Real-world testing of the digital ruble carried out in property transactions
Russia Takes a Step Forward with Digital Ruble in Real Estate Transactions
In a significant move towards modernizing its financial infrastructure, Russia has successfully completed its first real estate transaction using the digital ruble. This groundbreaking transaction, which took place in Moscow, saw a buyer purchase an apartment in the Novoe Ochakovo complex using the digital ruble platform of the Central Bank of Russia (CBR) through VTB Bank.
The deal, approved by regulators, involved opening digital ruble accounts on the CBR platform and payment via QR code in the VTB mobile app. This marks a significant step towards increasing transparency and efficiency in financial transactions.
Looking ahead, the Bank of Russia has plans to gradually introduce the digital ruble across the country. Major banks are mandated to offer digital ruble transactions by July 1, 2025, including account opening, transfers, and receipt of digital rubles. The Bank aims to extend these capabilities through different tiers of banks and commercial services.
A digital ruble pilot for welfare payments is scheduled to start in October 2025. Regions like Altai Krai are expected to follow the broader national rollout timelines, with the expansion to other regions likely to occur after major urban centers and systemically important banks are integrated.
However, the housing market in Russia is currently facing stress, with nearly 20% of developers facing bankruptcy risks due to high mortgage rates and declining sales. The digital ruble's introduction may improve transaction transparency and efficiency but will unfold amid these market challenges.
Alexander Pakhomov, deputy president-chairman of VTB, sees great potential in the digital ruble for increasing transaction transparency, reducing costs, and developing innovative financial services. VTB plans to offer its clients new products and services based on the use of digital national currency in the future.
The successful transaction with PIK using the digital ruble is a significant step towards creating modern and efficient financial infrastructure in Russia. As the digital ruble's use in housing transactions has begun in Moscow, its implementation in regions like Altai Krai remains part of a gradual, nationwide rollout planned for 2025-2026.
The digital ruble, introduced by the Bank of Russia, is expected to extend to other sectors of the industry, such as the real estate market, with major banks mandated to offer digital ruble transactions by 2025. In the technology realm, Russia plans to implement the digital ruble platform through mobile apps for increased efficiency and transparency in financial transactions.
