A major Russian bank, VTB Bank, has introduced an innovative solution that allows holders of digital rubles to perform real-time cash conversions at ATMs. With this new development, VTB Bank aims to provide convenience and accessibility to its customers.
CBDC Conversion at ATMs
VTB Bank has created a solution that enables users of its digital ruble to instantly convert their digital assets into banknotes at any of the bank’s 14,000 ATMs located throughout Russia. This groundbreaking technology was showcased at the recent Finopolis 2023 fintech forum.
The bank plans to initially offer this service to a select group of its online banking clients who are already using digital rubles. Currently, approximately 600 Russians in 11 cities, including Yekaterinburg and Moscow, are utilizing the digital coin.
The Central Bank intends to expand the pilot program early next year, thereby increasing the number of participants and the scope of the project.
Instantaneous and Seamless Solution
The solution introduced by VTB Bank is described as “instantaneous and seamless.” It employs a bridge-type system, which facilitates the transfer of CBDC holdings from digital wallets into non-cash rubles. These non-cash rubles are then conveniently converted into physical cash via conventional bank accounts.
“Our new CBDC solution provides VTB Bank customers with a seamless cash withdrawal experience at our ATMs. We are committed to delivering efficient and user-friendly digital banking services.” – Georgy Gorshkov, Deputy President and CEO of VTB Bank
In order to promote the adoption of the digital ruble, VTB Bank has decided to offer the CBDC services to private citizens free of charge. However, companies utilizing this service would be required to pay a commission rate of 0.3%.
The pilot program for CBDC involves twelve banks, and an additional 16 banks are expected to join this initiative in the New Year. Among these banks is the prominent Sberbank, as well as several regional banks. This approach follows a successful pattern established by China and its digital yuan project.
“We are pleased with the progress of the CBDC pilot program. The usage of digital RUB has surpassed our expectations, with citizens conducting several thousand transactions. Furthermore, participants have successfully made peer-to-peer transfers and business-to-consumer payments. We are also witnessing the adoption of digital rubles for business-to-business payments.” – Olga Skorobogatova, First Deputy Chair of the Central Bank
This new and innovative development in the Russian banking system signifies a significant step towards the digitalization of the country’s currency. With VTB Bank’s solution, users of digital rubles can now conveniently convert their assets to physical cash, providing them with greater flexibility in managing their finances.
