Russia’s central bank is forming a group of banking institutions to test a central bank digital currency (CBDC) next year.

On Tuesday the Central Bank of Russia officially announced notification founded the first pilot group for testing the digital ruble, in which 12 Russian banks participated.

Pilot members include the largest Russian banks such as Sberbank and the state-backed VTB, as well as large private banks such as Tinkoff Bank and other commercial banks such as Alfa Bank, Gazprombank, Promsvyazbank, Rosbank, Ak Bars Bank, Dom.RF, SKB -Bank, TKB and Soyuz Bank.

The bank confirmed Russia’s plans to complete a prototype digital ruble platform by the end of 2021 and start a test in January 2022. The first phase of the testing process involves testing the publication and some other activities. The Russian central bank then plans to expand the number of participants and the scope of the pilot activities.

Deputy Governor of Russia’s Central Bank Olga Skorobogatova said CBDC will increase solvency while reducing costs.

The Central Bank of Russia officially announced its CBDC plan and published a consultation document on the development of a digital ruble in October 2020.

The central bank’s preference for CBDCs over private cryptocurrencies has sparked outrage among several celebrities, including prominent financier Oleg Deripaska, who recently argued that the bank should provide “a real financial instrument that allows independence in foreign trade transactions.”

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According to Cointelegraph

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