Russia's Central Bank Advances Digital Ruble Testing in Tatarstan

The Russian Central Bank has initiated a significant step in the development of its digital ruble by requesting the Republic of Tatarstan to assist in testing various smart contract functions of the digital currency. This move comes as part of the Central Bank's ongoing efforts to pilot the digital ruble, despite a recent decision to indefinitely delay its national rollout.

The Ministry of Finance in Tatarstan has responded positively to the Central Bank's proposal, forming a working group to facilitate the launch of the digital ruble in the region. The ministry plans to utilize the Central Bank's test platform to conduct experimental conditional spending of targeted funds for specific purposes. This initiative is aimed at transforming national budget subsidies into smart contracts, which will be independently tracked by the digital ruble test platform to ensure compliance with established rules.

The testing phase is expected to conclude by the end of the third quarter of 2025. The working group, chaired by Tatarstan Finance Minister Marat Fayzrakhmanov and including Minister of Digital Development Airat Khairullin, will oversee the pilot program. This development suggests that the digital ruble project is still active, despite previous speculation that it might be scrapped due to pressure from the domestic banking sector.

Central Bank Governor Elvira Nabiullina has indicated that a new rollout date for the digital ruble will be announced later. She emphasized the need for more time to refine the pilot program, which began in August 2023 and includes 15 banks, 1,700 citizens, and about 30 companies. The pilot initially covered 11 cities, including Kazan, the capital of Tatarstan. Nabiullina also plans to hold consultation sessions with banks to determine the most attractive economic model for their clients.

In addition to the smart contract testing in Tatarstan, the Moscow Metro has also announced plans to expand its digital ruble pilot operations. The metro system, which was the first transport network in the nation to work with the digital ruble, is collaborating with the Central Bank and the megabank VTB to conduct joint tests. These tests focus on the Troika card, Moscow’s reusable contactless smart card, allowing participants to purchase and top up their cards using digital ruble wallets.

The developments in Moscow mirror previous digital yuan pilots in China, which have focused on delivering government subsidies and enabling contactless CBDC payments on transport networks. However, Moscow has emphasized