Bank of Russia Governor, Elvira Nabiullina, expects the country’s central bank digital currency (CBDC), the digital ruble, to gain mainstream adoption among Russians in the next few years. According to reports from local media, Nabiullina shared this view in a speech at the Federation Council.

Russia introduced the digital ruble last year, with President Vladimir Putin signing the law authorizing the country’s apex bank to operate the CBDC. Since Putin’s ascent, the Central Bank has been running a pilot phase with 13 local banks. Although its use is not yet widespread, at least 30 companies already offer digital rubles as a payment option.

Bank chief states “Digital ruble has clear advantages”

Elvira predicted that the digital ruble would become part of everyday transactions in five to seven years. She claimed that the digital asset has advantages such as lower commission fees than cards and free transfers, making it attractive for most users.

“In our opinion, there are clear advantages for people to use the digital ruble. These are absolutely free transfers for citizens and many times lower commissions than on cards, for business. We believe that thanks to these advantages, the digital ruble will gradually become a familiar part of our lives.”

So far, the use of the digital ruble is somewhat limited in the country. While 13 banks are part of the pilot phase, VTB Bank is the leading bank and was the first to support digital ruble transactions. About 30 companies across 11 cities now accept digital rubles via VTB. Russians can use it for everyday transactions such as paying for gas, phone and internet services, or even the Moscow Metro.

Nabiullina added that the government does not plan to impose the CBDC on anyone as it would exist with another form of the ruble. She expects usage to increase voluntarily as more Russians see the benefit of the digital ruble.

Russia wants to use CBDC for cross-border payments by 2025

Russia’s plans for its digital ruble are not limited to domestic transactions. The country is also planning to use it for cross-border payments, according to the chair of the Financial Markets Committee of Russia State Duma, Anatoly Akshakov. Akshakov disclosed that the Russian state intends to make its first cross-border crypto transaction by the second half of 2025.

One of the countries that Russia is targeting as a partner in these transactions is China. This is not surprising given the relationship between the two countries and China’s advancements in the CBDC development.

China is a pioneer in CBDC with its digital yuan. Although the digital yuan serves domestic and international payments, the country is working on other CBDC projects. It is the software architect for a cross-border CBDC project, mBridge, which also involves the Bank for International Settlements and the Central Banks of Thailand, Hong Kong, the UAE, and the

The BRICS countries, which include Russia and China, are considering having a common digital currency. Russia reportedly does not support the idea as it believes it would be too complex. Nevertheless, the country is still far from its target for the domestic use of its digital ruble. The second phase of the digital ruble pilot will start in 2025, with the addition of 16 more banks, including Russia’s largest bank, Sber.