The Central Bank of Russia has launched a pilot program in Tatarstan to test smart contracts for the digital ruble. The initiative, coordinated with the region’s Ministry of Finance, aims to experiment with the conditional spending of funds allocated for specific purposes.
A working group has been formed to oversee the project, according to the Ministry of Finance of the Republic of Tatarstan. The group will be led by Marat Fayzrakhmanov, the republic’s finance minister, and Airat Khairullin, the head of the Ministry of Digital Development, will also take part.
Authorities plan to run tests on the digital ruble’s smart contract mechanism using the Central Bank’s test platform. The system will track transactions and ensure compliance with predefined rules governing targeted subsidies. The experiment will operate in emulation mode and conclude by the third quarter of 2025.
“The goal is to conduct experimental, conditional spending of targeted funds for certain purposes,”
the Ministry of Finance stated.
The test results will be used to define formal requirements for subsidy allocations, which will then be transformed into smart contracts governing digital ruble transactions.
Digital Ruble Rollout Faces Delays
The pilot program comes as Russia’s broader plans for the digital ruble face delays. The Central Bank originally scheduled a full rollout for July 1, 2025, but postponed the launch. The new timeline remains undisclosed.
Bank of Russia Governor Elvira Nabiullina emphasized that further testing is required before a national launch. “The mass introduction of the digital ruble will take place after we refine all details in the pilot phase and consult with banks on the most attractive economic model,” she said.
Despite the delay, the pilot program has proceeded with limited participation. Currently, 15 banks, 1,700 individuals, and around 30 businesses are involved. The Central Bank initially launched testing on August 15, 2023, with 600 people opening digital ruble wallets and transacting at 30 retail locations across 11 cities, including Kazan.
Russia’s digital ruble initiative is part of a broader global trend. As of September 2024, 134 countries were exploring Central Bank Digital Currencies (CBDCs), according to a Reuters report.
Nations such as China, South Korea, and the United Kingdom have already initiated pilot programs, while the Bahamas, Jamaica, and Nigeria have officially launched CBDCs.
The European Central Bank is conducting a multi-year test of the digital euro, reflecting growing international momentum toward digitized national currencies. Russia’s ongoing pilot in Tatarstan signals its continued commitment to developing a digital ruble despite regulatory and technical challenges.
