Russia's central bank said the number of digital ruble accounts topped 220,000 in the first month of a pilot program, nearly four times its initial projection. The surge comes as the Bank of Russia prepares to expand testing of the state-backed digital currency.
The pilot, which began in mid-August with 13 banks and a limited number of merchants, aimed to test basic functions like opening wallets, transfers, and payments. The central bank had forecast around 60,000 accounts in the first month. Instead, 220,000 accounts were opened, the bank said, without providing a breakdown of active users.
What the digital ruble does
The digital ruble is a central bank digital currency (CBDC) — a digital form of cash issued directly by the Bank of Russia. Unlike commercial bank deposits, it's a direct liability of the central bank, and the bank has said it won't pay interest on holdings. The pilot is testing person-to-person transfers, payments for goods and services, and interactions with commercial banks.
The central bank has stressed that the digital ruble is not a cryptocurrency and is not meant to replace cash or bank deposits. Instead, it's designed to provide an alternative digital payment method and to reduce reliance on cross-border systems that Russia has been cut off from since 2022.
BRICS digital currency talks
Separately, the BRICS group of nations — Brazil, Russia, India, China, and South Africa — is exploring ways to link their digital currencies for cross-border trade and payments. The discussions, confirmed by Russian officials, are at an early stage and no formal agreement has been announced.
The idea is to create a bridge between national digital currencies that would allow businesses to settle trades without converting through U.S. dollars. For Russia, which has faced sanctions limiting its access to global financial messaging systems like SWIFT, such a link could offer a workaround. But technical and regulatory hurdles remain, and other BRICS members have their own CBDC projects at different stages.
Expanding the pilot
The Bank of Russia has said it plans to broaden the digital ruble pilot to more banks and merchants in the coming months. By next year, it aims to test cross-border payments with other countries, though it hasn't named which ones. The bank has also proposed a timeline for a full rollout by 2025, pending pilot results and legal changes.
Consumer adoption has been a mixed bag in other countries. China's digital yuan, launched in 2020, has seen billions of dollars in transactions but still accounts for a tiny share of overall payments. The Bahamas, Nigeria, and several others have launched CBDCs with limited uptake. Russia's rapid initial sign-up rate may reflect curiosity more than sustained use, analysts say — but the central bank hasn't released retention data.
The digital ruble's success could hinge on whether it offers something existing payment apps don't. The central bank has said it will be free for person-to-person transfers and offer offline capabilities, which could appeal in areas with poor internet connectivity. But it will also compete with Sberbank and other commercial lenders that dominate Russia's retail payments.
What to watch
The Bank of Russia is expected to report pilot results and any changes to the rollout schedule in the coming weeks. For now, the central bank is processing data from the first month and hasn't said when it will start testing cross-border transactions with BRICS partners. A legal framework for the digital ruble is still working its way through the State Duma.
