Locked Russia Launches Digital Ruble and ID: The Future of Transactions and Identity Verification?

[kameel]

The Central Bank of Russia will begin a trial of a digital ruble starting in April. The project will be launched for direct transactions between individuals and for retail purchases. Moscow is also starting the rollout of a digital ID.

The news about the CBDC pilot was recently announced by Olga Skorobogatova, deputy governor of the Central Bank. "The pilot will involve real transactions between real customers - but for a limited number of transactions and for a limited number of customers with thirteen banks that have already confirmed their technical readiness," she said, according to the TASS news agency.

Skorobogatova emphasized that the general public cannot participate in the pilot in this first phase, as it will start with selected customers. After the digital ruble has been tested in practice, the bank will decide how the project will be expanded.

The Central Bank of Russia proposed the idea of a CBDC in October 2020. It then published a consultation document outlining potential designs for the digital ruble. In later publications, the bank said the project could help make the Russian economy less dependent on the US dollar and mitigate the effects of Western sanctions.

In Russia, a digital ID is also being rolled out. "The Russian Ministry of Digital Development, together with the Federal Security Service (FSB), will submit a draft decision before May 1, which will allow for the use of a digital identity document on smartphones instead of a passport in some everyday situations," said Russian President Vladimir Putin, according to the Interfax news agency.

There will be only a few situations in which a digital personal identity card can be legally used instead of a passport, said Minister of Digital Development Maksut Shadayev. "We are not eliminating the passport," he reassured.