Russian banks authorized to halt transfers with CBDCs for days

The Central Bank of Russia has approved a new rule that will allow banks to block transactions with digital rubles for days if they are deemed linked to fraud.

The Central Bank of Russia has introduced new rules requiring banks to suspend digital ruble transactions for up to two days if suspected of fraud. The directive, which aims to protect “citizens and organizations” from fraudulent activities, will come into force on February 23, 2025, the central bank said in a press release.

“Banks will be required to suspend customer instructions for transactions with digital rubles for two days if they show signs of fraud.”

Bank of Russia

The central bank said that if a suspicious digital ruble transaction is detected, the bank will warn the customer about possible fraud. Customers will have 24 hours to confirm or cancel the transaction. If they do not respond, the money will remain in their digital wallet. These measures are similar to those currently used for regular payments, the central bank added.

Russia has been piloting its central bank digital currency since August 2023, and it is expected to be available for widespread use by mid-2025. Central bank governor Elvira Nabiullina had previously confirmed that the digital ruble would go into “mass implementation” by July 2025 if the pilot projects are successful. However, he noted that it would likely take several years to complete the transition.

In a consultation document dated October 2020, the central bank assured citizens that the proposed CBDC would complement, not replace, existing cash and non-cash rubles in circulation. In contrast, China, a key reference point for Russia’s digitalization efforts, has begun paying Changshu provincial salaries to civil servants using its own CBDC (digital yuan) to encourage the adoption of its state-controlled currency.