Challenges in the Rollout of the Digital Ruble

The rollout of the digital ruble faces significant challenges, with 30% of Russian banks unprepared due to outdated infrastructure and reluctance to comply with the central bank’s CBDC plans.

A recent survey conducted by tech firms Flant and Diasoft found that approximately 30% of Russian banks are not ready to adopt the digital ruble, which is Russia’s form of a central bank digital currency (CBDC).

According to a Vedomosti report on March 14, Russian banks appear reluctant to act as “agents” for the central bank. The primary concern is about losing control over their clients’ finances and facing stricter transparency requirements.

Local experts suggest that banks understand that the digital ruble would mean ceding some control and dealing with increased reporting to the Bank of Russia, indicating this shift is “clearly not in the banks’ best interest.”

The survey, which included over 150 IT directors and banking professionals, revealed that only 20% of banks reported being fully prepared for the digital ruble, while around 50% mentioned being only partially ready.

Additionally, 14% of respondents expressed concerns regarding information security risks stemming from strict data protection requirements. Despite these challenges, some banks, including the sanctioned VTB, Sberbank, and Gazprombank, are already gearing up for the transition.

In late February, crypto.news reported the Bank of Russia delayed the mass rollout of the digital ruble. Russian authorities stated that a new launch date would be announced later, emphasizing the need to ensure the system is beneficial for both banks and their clients.

The digital ruble pilot began in August 2023, allowing certain banks and users to test payments. The government originally aimed for a wider launch by July 1; however, the timeline now remains uncertain.

Read more: Russian lawmakers believe digital ruble will replace banks