In a statement to Russian-stated media TASS, Chairman of the Russian State Duma’s Financial Markets Committee Anatoly Aksakov said at the St. Petersburg International Economic Forum (SPIEF):
Fundamentally, there are few countries that have made serious progress in using national digital currencies. This is why technologically they are simply not ready to launch a digital currency in mutual settlements with other countries. However, I am confident that it will be common practice within five years.
I admit that digital ruble will probably be used for international payments as early as next year, with first settlements carried out, not in the first half of the year though. It should be launched more widely within our country, including for being used by legal entities. I suggest that budget financing with the use of smart contracts be tested as quickly as possible.
Chinese have made good progress with digital yuan, China is clear in this sense. Both we and they already got certain experience, which is why with China it would be interesting to launch the process of settlements in digital currencies. Technologically we are quite close. It would also be possible to have a try with Belarus as well since it is a friendly country.
Progress is already being made with Russia’s CBDC domestically. Ledger Insights provided more details:
On that front, the first phase of pilots started in August 2023, with VTB as the first Russian bank to make transactions. Currently 30 companies in 11 cities support the acceptance of the digital ruble via VTB. For example, some Lukoil gas stations accept the CBDC for fuel and snacks, users can pay for phone or internet access online at Rostelecom, and it’s possible to use the CBDC on the Moscow Metro.
SEE: Russia Officially Unveils Its CBDC Ruble
Last week the central bank signed a cooperation agreement with the Mayor of Moscow. It envisages a more widespread rollout of the CBDC in the future for metro travel, parking, and other transport services. Additionally, the Mayor said the city plans to use smart contracts to automate the insurance of its urban transport rolling stock.
Meanwhile, apart from e-commerce and online transactions, users can transfer funds between their bank account and the digital ruble wallet via 14,000 VTB ATMs. The bank also conducted a cross border transaction with Belarus last year, although it was in a test environment.
VTB is one of 13 banks included in the first phase of trials. The second phase will include Russia’s largest bank Sber, the largest digital bank Tinkoff, and another 15 banks. It will also expand the number of focus group participants and retail outlets, add dynamic QR codes, and allow transfers between companies and other legal entities.
“At the next stage of the project’s development, it is important to expand the circle of its participants, especially through legal entities – trade and service enterprises, which could provide additional opportunities for using the digital ruble,” said Vadim Kulik, Deputy President and Chairman of the Board of VTB. “Piloting with a large number of companies will give another impetus to the development of the project and take a fresh look at the key advantages of the national digital currency for clients.”
AUTHOR COMMENTARY
Make no mistake: not all Russians like the sound of this; many of them are just as privy as we are to this loss of freedom. Off-Guardian noted last year that some Russian publications did warn of the dangers and fears of implementing a CBDC:
Proverbs 22:7 The rich ruleth over the poor, and the borrower is servant to the lender.
It’s far from just the U.S. and Europe: central banks around the world collectively have the world right where it wants it to be. From dirty cash to digital trash – that’s where it’s going, fact. SEE: End Of Empire: 59 Nations Seek BRICS Membership, As Leaders Further Quest To De-Dollarize And End US Hegemony At BRICS Summit
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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