Russian Banks Baulk at Digital Ruble Implementation Costs

Russian banks, particularly smaller ones, are unhappy about the high cost (between $1.25 million and $2 million) of integrating with the central bank’s digital ruble platform. This cost is seen as prohibitive for many banks, exceeding their IT budgets. The central bank has mandated different deadlines for various bank categories to offer digital ruble services, with smaller banks having the latest deadline in 2027.

Larger Banks to Fully Integrate by Mid 2025

Russian banks have complained about the high “entry” cost of working with the central bank digital currency (CBDC). Local experts say the cost of connecting to the digital ruble platform, ranging from $1.248 million to $2 million (120 million rubles to 200 million rubles), is prohibitive for smaller banks as it exceeds their annual IT budgets.

An anonymous source cited in a report said that nearly all bank systems will need integration with the CBDC. These systems include compliance, automated banking, and remote banking systems for both individuals and legal entities.

As previously reported by Bitcoin.com News, Russia began piloting the digital currency in 2022 and expects to start full implementation in mid 2025. So far, only five of the 13 Specialized Credit Institutions for Small and Medium-Sized Enterprises (SSICI) banks are participating in the pilot: VTB, GPB, Alfa-Bank, PSB, and Sovcombank.

The Bank of Russia has mandated that SSICI banks must offer clients the ability to use the digital ruble starting July 1, 2025. Universal banks (around 208) are expected to follow suit on July 1, 2026, while banks with basic licenses will begin on July 1, 2027.

An Investment Without Return

While the central bank and Russian officials have expressed satisfaction with the established timeframes, sources quoted in the Kommersant report assert that these only suit larger banks that are already technologically advanced.

Alexey Voylukov, a professor at the Russian Academy of National Economy and Public Administration (RANEPA), believes basic license banks will suffer the most, with some banks likely to close. For medium-sized banks, integration with the CBDC platform is akin to an investment without a return.

“[Medium-sized banks] may not have a single client with a digital ruble wallet, but they must spend money on the infrastructure and its maintenance,” Voylukov argued.

Despite these reservations expressed by some banks, the Russian central bank is proceeding with the established timeframes and has vowed to fine institutions that fail to abide by the set deadlines.

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