The Russian Central Bank is set to test its digital ruble on Moscow’s renowned metro system, indicating significant momentum in the nation’s CBDC (Central Bank Digital Currency) initiative.
Earlier in the week, the Central Bank had pointed out that the pilot program, commencing officially on August 15, would primarily involve minor retailers in 11 undisclosed Russian cities.
However, there seems to be an inclination to expedite the CBDC’s deployment, leading to a collaboration with Moscow’s iconic metro network.
According to the local news source Vedemosti, a select group of Moscow residents will participate in a “closed focus group”, allowing them the opportunity to explore fare payments using the digital ruble.
Roman Latypov, the First Deputy Head of Moscow’s Department of Transport and Road Infrastructure Development, provided further clarity on the digital ruble’s integration within Moscow’s transport network during a press conference.
He elaborated that participants in the pilot program will have two payment methods at their disposal. They can either opt to make payments straight from their CBDC wallets or use the digital ruble to purchase the Troika travel card.
For those unfamiliar, the Troika card is the smartcard system for Moscow’s public transportation, facilitating payments across various transit options including buses, monorail services, trolleybuses, and trams.
Latypov also added a touch of exclusivity to the initiative. He revealed that Troika cards offered to those using the digital ruble will flaunt a distinctive, commemorative design, setting them apart from regular cards and marking this significant transition in Moscow’s transport payment methods.
Russia’s Digital Ruble: Moscow Metro Prepares for Pilot
Roman Latypov further informed that the Moscow Metro is in the process of enhancing its IT infrastructure to accommodate payments using the digital ruble.
He expressed optimism regarding the pilot’s success and hinted at broader implications for the initiative. If the pilot on the metro yields positive results, Latypov mentioned that they would consider extending the digital ruble payment tests to other modes of public transport in Moscow.
Latypov emphasized the proactive involvement of passengers in subsequent phases, stating:
“At that stage, we will openly involve passengers in a more active manner.”
However, he remained discreet about specific details, not revealing the start date for the metro trials or the number of participants expected to be in the initial test group.
Latypov emphasized the digital ruble’s expansive usability, asserting that passengers would be able to utilize the token across the entirety of the subway system.
In parallel developments, the Central Bank is actively working to integrate more commercial banks into the pilot initiative. Olga Skorobogatova, the First Deputy Governor of the bank, revealed that a “second group” consisting of 16 banks is primed and prepared to swiftly become part of the project.
While an initial cluster of 13 banks is set to participate in the upcoming pilot next week, the anticipated timeline for the involvement of the second group is “next year,” as mentioned by the Central Bank.
Notably, the second group’s composition has witnessed a change. Initially consisting of 15 members, the group experienced a slight reduction when Sberbank and Tinkoff Bank, two major pillars in Russia’s financial landscape, decided to step back from the initiative.
It seems that there’s some hesitancy amongst certain banking institutions in Russia regarding the digital ruble. Earlier, the primary association representing Russian banks voiced apprehensions about the new token.
Although the Central Bank has held off on officially unveiling the list for its “second group” of banks, there are murmurs in the media about some of its potential members. As per reports, the Russian National Commercial Bank, based in Crimea, and the Moscow Credit Bank are believed to be part of this group.
Reiterating its commitment to the project, the Central Bank announced that a total of 600 citizens are slated to start transacting with the digital ruble by next Tuesday.
On a global scale, the exploration of CBDCs in metro systems isn’t novel. For instance, China took the lead by experimenting with CBDC payments earlier this year, facilitating transactions on the Quingdao city metro system without the need for an active network or power source.
