CBR announces timetable for digital ruble rollout

With the widescale adoption of electronic payments and commercial cryptocurrencies, central banks around the world have begun to focus on digital versions of money issued and regulated by the central bank. Practically all respondents to a recent survey by the Bank for International Settlements (BIS) said their respective central banks were actively studying the introduction of digital central bank currencies. About 30 % of responding central banks reported that their countries have already passed enabling legislation for the introduction of digital central bank currency. In the case of emerging market and developing economies, the percentage of central banks preparing launches of digital currencies was significantly higher.

The Central Bank of Russia (CBR) has been preparing for the introduction of its own digital central bank currency, the digital ruble, since 2020. Digital central bank currency, i.e. a currency issued by the central bank, is backed by the central bank like cash. The digital central bank currency is held directly in accounts maintained by the central bank, not commercial banks. Russia’s digital ruble is planned as a payment instrument that can be used side by side with Russian ruble bank notes, as well as the CBR’s Faster Payment System for instant interbank transfers via e.g. mobile devices, as well as payment platforms of commercial banks. The digital ruble is not seen as a savings instrument as no interest is paid on digital ruble accounts.

Russia plans to phase in the digital ruble gradually. Russia’s major banks, which are central to the payment system, are obliged to offer their customers banking services based on the digital ruble starting in September 2026. Customers should be able to open a digital ruble account and use digital rubles in credit transfers and retail payments. All banks operating on a universal banking licence (equity over 1 billion rubles), as well as larger retailers, must offer payment services based on digital rubles starting from September 2027. Other banks must offer payment services based on the digital ruble by September 2028. Russia’s finance ministry is preparing to use the digital ruble in federal government budget payments already next year.

In addition to the digital ruble, a universal QR code will be introduced to facilitate payments via the national payment system. The universal QR codes is intended to give customers the possibility to pay for purchases with the central bank’s instant payments system, payments on commercial bank platforms, instalment payments or with digital rubles. Banks are required to make their current systems compliant with the universal QR codes system by September 2026.

The digital ruble must be accepted as a means of payment by all retailers with annual net sales in excess of 120 million rubles as of September 2026. Mid-sized retailers will be required to use digital rubles by September 2027. Only very small retailers and locations without internet connection are exempt from digital ruble requirements.

The move to the digital ruble seeks to improve the security and efficiency of payments. By developing its own payment arrangements, Russia further seeks to strengthen its independence and protect itself from western financial sector sanctions. The digital ruble complements Russia’s national payments system that includes its own payment transmission system, which is the basis for Russia’s own Mir payment card introduced in 2017 and the instant payments system FPS for mobile payments introduced in 2019. International payments with the digital ruble or Mir card do not rely on SWIFT international payment transmission system. As a result, use of the digital ruble in payments could make it easier to circumvent sanctions in the future. For the economy, the cost of building domestic systems is part of Russia’s drive for economic self-sufficiency and insulation against the effects of sanctions. The government hopes that the digital ruble will at least slow the spread of foreign cryptocurrencies and stable coins on the Russian market.

Electronic payment in Russia has grown rapidly over the past decade. Ten years ago, cash was used in over half of the volume of retail sales transactions. By the first half of 2025, that share had fallen to around 13 %. The share of cash in retail trade net sales has declined to about 30 %. Cash rubles are still the main form of payment for many Russians, however. A recent central bank study found that cash is the most important form of payment for about a quarter of Russians, and about a third of Russian keep at least a part of their savings in cash. The shares for paying in rubles and holding cash have increased slightly since last year. The digitalisation of payments and the transfer of retail payments to the central bank’s instant payments system FSP – and now the digital ruble – will also increase the ability of authorities to supervise, and if necessary, restrict the money transfers of citizens.

The use of cash in payments in Russia has declined steadily in recent years

Source: Central Bank of Russia.