VTB and PSB successfully test the transfer of digital rubles
By Joy Dumasia
VTB Bank and PSB conducted the first successful operations testing with digital rubles issued on the test version of the Bank of Russia’s Digital Ruble platform. In order to perform the transfer, VTB has developed a prototype mobile app that allows the client to conduct operations with the digital ruble. The client can register as a user of the digital ruble platform, open a digital wallet, exchange non-cash rubles from their bank account for digital rubles and send digital rubles to other users on the platform. Testing ended with successful transfers of digital rubles between PSB and VTB clients.
All information about the transactions carried outcomes from the test contour of the Bank of Russia’s digital ruble platform and is instantly reflected on the balance of the client’s digital wallet in the mobile app. The architecture of the digital platform, developed by the Bank of Russia, enables clients to register once through the mobile application of any bank connected to the platform, gain access to the digital wallet and conduct operations.
Cryptographic protection and encryption ensure a high level of security for all settlements in digital currency: each ruble has its own digital individual number, which forms a new system of protection against fraudulent transactions. The Bank of Russia directly carries out storage and accounting of digital rubles.
Vadim Kulik, Deputy President and Chairman of VTB Bank, said: “The first successful operation with the digital ruble is a landmark moment in the development of the digital payment infrastructure of our country. VTB, as a tech leader in the financial market, actively cooperates with the Bank of Russia and is ready to participate in further work on legislation for the organization of money circulation using the digital ruble. The digital ruble will create innovative services based on smart contracts and increase the availability of financial services, including in remote and sparsely populated areas of Russia, as it can be used without access to the Internet. This will become a driver for the development of new national payment services for the population and business across Russia.”
Oleg Barybin, First Deputy Chairman of the PSB, said: “The digital ruble brings the national payment infrastructure to a whole new level as well as improving standards around the reliability and transparency of settlements in the financial system and the Russian economy. PSB, as a backbone and high-tech bank, takes an active part in this process, using the bank’s digital infrastructure and the skillset within our team covering the digital ruble platform. Together with the Bank of Russia, we are creating a fundamentally new digital payment infrastructure for everyone and every business in Russia. Based on our experience, within the framework of the digital ruble test platform, new standards for the financial market will be developed, legislation and regulation of the future settlement system using the digital ruble will be formed.”
IBSi Daily News Analysis
September 21, 2023
Bank of Russia
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