In 2024, the Bank of Russia will begin to gradually connect all credit institutions to the digital ruble platform and increase the number of available payment and transaction options using smart contracts.
Critics have warned that the CBDC may threaten the stability of the banking system, but the Bank of Russia does not expect a large-scale outflow of funds from bank deposits, as traditional financial institutions attract capital by offering interest payments and bonus programs.
The Bank of Russia explained that for the financial institutions of its country the digital ruble should serve as “an additional incentive to increase the attractiveness of bank accounts”.
The entity also explained that “Keeping money in bank accounts has certain advantages over storing cash in digital wallets, since the former accumulate income. That is why the Bank of Russia does not intend to pay any interest on digital ruble holdings on its CBDC platform.”
The Russian monetary authority is also preparing to start testing with real transactions and users in April next year, earlier than initially planned.
Source: Ambito
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