The Bank of Russia has set out plans to build a prototype digital ruble by the end of the year.
The bank has opted for a two-tier retail model which assumes that it is both the issuer of digital rubles and the operator of the platform.
As with China’s digital yuan, commercial banks will be able to open electronic wallets for their clients and perform operations over these wallets on the digital ruble platform.
This means individuals and businesses will be able to access the currency through their normal banking app.
Presenting the digital ruble concept, First Deputy Governor Olga Skorobogatova says Bank of Russia is likely to use open source code to build its own propriety DLT platform for the ruble.
Explaining the decision to push ahead with a CBDC, the bank says it will reduce costs for households and businesses, increase the speed of payments, and develop innovative products and services.
