Belarus Plans to Implement its Central Bank-created Digital Currency by the End of 2026

By the end of 2026, Belarus plans to implement its central bank-created digital currency, known as the digital ruble. It is a significant step forward in reforming the country's financial sector, according to the National Bank of Belarus and Prime Minister Roman Golovchenko.

By the third quarter of 2024, small-scale transactions will be pilot tested to check the system's reliability. These trials will be conducted with specific financial institutions to test for any technical issues that may arise.

The digital ruble's legal basis will be defined by mid-2025, the central bank expects. To ensure this step facilitates broad adoption and aligns with national financial regulations is crucial.

The digital version of the Russian ruble will be fully operational in the second half of 2026, said Prime Minister Roman Golovchenko. The rollout is gradual to allow for thorough testing and public education prior to the transition.

In addition to traditional bank accounts and cash, the digital ruble will also be available. However, it will be stable and trusted because it is issued and backed by the central bank. Unlike Bitcoin and other cryptocurrencies, the CBDC will be centralized and provide the government more control over monetary policy.

China and Sweden are not the only ones to develop their own CBDC projects, Belarus is following suit.

The officials explained that the digital ruble is designed to make payments more efficient, for instance, in cross-border transactions. It could help reduce reliance on intermediaries, which would decrease the cost for businesses and consumers.

The CBDC's ability to enhance transparency and reduce fraud risks will also be realized by real-time transaction tracking.

The central bank is also concerned with cybersecurity to ensure the digital ruble is protected from threats. Data integrity, privacy, and the privacy of users will be protected by robust encryption and blockchain-inspired technologies underlying the system.

Small and medium-sized enterprises will get a lot from them. Settling payments will be easier with the digital ruble and the operational costs will also be reduced. That could be good for Belarus’s burgeoning tech sector.

It is still about public adoption. The central bank will carry out awareness campaigns to raise awareness amongst citizens of the CBDC and its usage. The efforts will be made to target the urban and rural population at large.

The digital ruble will be available for use on a mobile app, a bank card and on online platforms and all users will be able to access it. Widespread acceptance requires this interoperability.

At present, Belarus's financial institutions are in the process of shifting. The next banks are upgrading their infrastructure to support CBDC transactions, and future fintech companies are experimenting with innovations like smart contracts and programmable money.

The digital ruble can also strengthen Belarus's place in international trade at the same time. As a result, it may be a source of attraction for foreign investors and partners, in the first turn, in the Eurasian Economic Union as a safe and efficient means of payment.

The central bank recognizes the complications that are involved in the technicalities and the skepticism that is held by the general population. To deal with these, it is conducting joint work with international experts and studying the experience of the successful CBDC models, including China's digital yuan.