Russia Delays Digital Ruble to 2026—Sanctions Cause Setback

The Bank of Russia is reportedly delaying the full launch of the digital ruble until mid-2026 due to technical migration challenges. According to a report from Frank Media, banks expected to support the digital currency are facing difficulties transitioning from foreign database software, particularly Oracle.

The central bank originally aimed for a widespread launch by July 2025. In February, though, Governor Elvira Nabiullina announced that the launch would be delayed, but she did not provide a new schedule or the specific reasons for this setback.

Technical Challenges and Security Concerns

One of the primary issues affecting the rollout is banks’ struggle to migrate from foreign software providers. Due to sanctions, many Russian banks have been working to replace Western technology, but not all have successfully transitioned.

A banking executive also pointed out concerns regarding technical security and the digital ruble’s functionality during power outages. Another source indicated that automated banking systems (ABS) still have unresolved issues with database management, further complicating the process.

Despite these setbacks, officials maintain that the pilot program is running smoothly. At a recent economic forum, a central bank representative stated that the system’s core functionality is operational and that no major technical or regulatory obstacles have been found so far.

Expansion of the Digital Ruble Pilot

The digital ruble pilot program is continuing, with an increasing number of participants. According to central bank official Alla Bakina, the number of individual users has risen from 500 to 2,000, while business participation has increased from 30 to 50 companies. She also noted that approximately 70 more businesses have completed testing and will soon be added to the pilot.

Bakina further stated that the pilot has successfully tested tax payments and fines using digital rubles. The central bank now aims to expand the program to the e-commerce sector within the year.

Ongoing Discussions with Banks

The Bank of Russia is still working with financial institutions to finalize an economic model for the digital ruble. Speaking before the State Duma, Governor Nabiullina explained that additional time is needed to ensure the system is financially viable for banks.

“The pilot data gives us the opportunity to discuss economic models with banks in detail,” she said, adding that the central bank wants to ensure that the digital ruble fits into banks’ financial strategies.

While the exact launch date remains undecided, the Bank of Russia has not denied the possibility of a mid-2026 rollout. Officials have assured that further updates will be provided once discussions with banks are complete.