Experts warn that the high investment required to join the digital ruble platform could be prohibitive for small Russian banks, as it exceeds their annual tech budgets by several times.

The entry cost for Russian banks to join the Bank of Russia’s central bank digital currency platform appears to be extremely high for small lenders, as it significantly exceeds their annual tech budgets, Russian newspaper Kommersant reports, citing local industry participants.

As per their estimates, it would cost between ₽120 million to over ₽200 million rubles (around $1.3 million to $2.2 million) to upgrade their systems, including automated banking and compliance software. One of the sources familiar with the matter says the issue for small banks is that “their digital banking systems often come from multiple providers, complicating integration.”

The Bank of Russia aims to roll out digital ruble services by 2027 across all banks, starting with systemically important institutions in 2025. The regulator believes the timeline is sufficient for banks to integrate the digital ruble, noting that several large banks are already piloting operations.

In early September, Coin Insider Daily reported that Russia‘s banking giant Sberbank plans to start operations with the digital ruble for its customers in early 2025.

The Bank of Russia first introduced the digital ruble prototype in December 2021, with testing beginning in 2022. As of August 2023, clients and employees from 13 Russian banks participated in pilot transactions. In September, the central bank expanded the pilot to include up to 9,000 individuals and 1,200 companies, up from around 600 individuals and 22 companies previously.

In late July, Russia’s central bank indicated that the digital ruble could be available for broader use by July 2025. The central bank reassured that the digital ruble will complement, rather than replace, existing cash and non-cash rubles. China, a key reference for Russia’s digital currency initiatives, has begun paying state salaries in Changshu with its own CBDC, the digital yuan, to boost the adoption of the state-controlled currency.