It seems the full rollout of Russia’s digital ruble project has been put on hold indefinitely. Local news source TASS reports that the central bank has decided to postpone the launch.

Back in August 2023, the Central Bank of Russia kicked off a limited pilot program to test their digital currency. This initial phase involved a group of 12 banks and roughly 600 individuals, who put the digital ruble through its paces – testing everything from digital wallets to transfers and automatic payments.

Businesses also got a chance to explore using the digital ruble for transactions. Initially, the goal was to have wider adoption in place by July 2025.

However, those plans are now on hold, as the full launch has been delayed without a new date in sight. Authorities are extending the pilot program to fine-tune the technical side of things and give banks more time to figure out the economics of it all.

Bank of Russia Governor Elvira Nabiullina has reportedly confirmed the delay. She explained that this extra time will allow financial institutions to develop digital ruble models that really work for their customers. She emphasized that this pause is necessary to make sure the digital ruble is a win-win for everyone involved.

Nabiullina said:

“We will move on to the mass implementation of the digital ruble somewhat later than originally planned, namely, after we have worked out all the details in the pilot and conducted all consultations with banks on the economic model that is most attractive to their clients. We will be able to name a new date for the mass launch later.”

Nabiullina has previously talked up the digital ruble’s benefits, even predicting it could become a standard part of our daily transactions by 2031. She pointed out some key advantages, like free transfers for individuals and lower transaction fees for businesses – things that could really boost its adoption.

Even with this delay, Russia is still moving forward with incorporating digital assets into its economy. Over the last year, they’ve passed several crypto regulations, including rules about taxes and mining, showing they’re serious about formalizing the digital asset sector.