A significant Russian bank, VTB Bank, has developed a system enabling digital ruble holders to convert their digital currency to cash at ATMs instantly.
VTB Bank revealed its new Central Bank Digital Currency (CBDC) solution at the recent Finopolis 2023 fintech forum. This innovation allows users to convert CBDC holdings from digital wallets into “non-cash rubles,” then into cash via standard bank accounts.
The service, described as “instantaneous and seamless,” will initially be accessible to a handful of digital ruble-using online banking clients. Approximately 600 Russians in 11 cities, including Yekaterinburg and Moscow, are presently utilizing the coin.
Georgy Gorshkov, Deputy President and CEO of VTB, characterized the introduction of technology that enables people to withdraw digital rubles from ATMs as a significant step towards making the process more understandable, convenient, and straightforward. He emphasized the need for preparing the infrastructure in advance before releasing the coin into mass circulation.
The Central Bank plans to broaden the scope and scale of the digital ruble pilot early next year. While private citizens will have free access to CBDC services, companies will incur a commission rate of 0.3%. Twelve other banks are currently participating in the CBDC pilot, with an additional 16 expected to join in the New Year.
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