Digital ruble in Tatarstan: how the global experience of e-CNY will help the region become an innovation leader
This is a chance for Tatarstan not only to strengthen its position as an innovation centre but also to become an example for other regions of the country
The introduction of the digital ruble is one of the key projects of the Central Bank of the Russian Federation, which is already being tested in several regions of Russia. Tatarstan, with its developed IT infrastructure and strong positions in digitalization, has every chance of becoming a pilot region for the large-scale introduction of the new currency. However, for success, it is important not only to take into account Russian realities, but also to adopt the best world practices. One of the most striking examples is the Chinese digital yuan (e-CNY), which is already actively used in the daily lives of millions of citizens. How can China's experience help Tatarstan? Candidate of Economic Sciences, digital economist Ravil Akhtyamov examined this in detail especially for Realnoe Vremya.
“An opportunity to create a new ecosystem for business and citizens”
It is no coincidence that Tatarstan is considered a potential leader in this project. The region has long established itself as an innovation hub: there is an IT park, the first satellite city in Russia, Innopolis, was created, and Kazan is among the leaders in the implementation of “smart city” technologies. According to the Ministry of Digital Development of the Republic of Tatarstan, more than 80% of public services in the republic have been transferred to electronic format, and the level of Internet penetration exceeds 85%. These factors make Tatarstan an ideal platform for testing the digital ruble.
“We see the digital ruble not just as a payment tool, but as an opportunity to create a new ecosystem for business and citizens,” said former Deputy Chairman of the Central Bank Olga Skorobogatova.
The digital ruble as a tool for stimulating the economy
China is actively using e-CNY to stimulate consumer demand. For example, in 2022, Beijing distributed 40 million yuan in digital format through the JD.com platform. Citizens could spend these funds on goods from local producers, which supported small and medium businesses. According to some reports, such programs increased the turnover of small businesses by 15-20% in pilot regions.
What can be done in Tatarstan?
You can offer a Digital Sabantuy programme — accrual of bonuses in digital rubles for purchases at fairs, festivals and in local stores. For example, for every 1,000 rubles spent at an agricultural fair, the user receives 10% bonuses that can be used within a month.
Also — introduce digital coupons for social needs: payment for housing and communal services, transport or education with a 5-7% discount. This will not only increase the popularity of the currency, but also support socially significant sectors.
Successful cases abroad can be cited as an example. For example, Singapore provides small businesses with digital dollar vouchers for the implementation of technologies. This helps companies automate processes.
The prospects for Tatarstan are amazing
The republic may become the first region where the digital ruble will be integrated with the Electronic Government platform. For example, subsidies for farmers or grants for startups can be automatically credited in digital rubles, which will reduce the time it takes to receive funds and minimize corruption risks.
One of the key problems with the introduction of digital currencies is accessibility for the population in remote areas. China is solving this problem with the help of NFC technologies and SIM cards with offline payment support. For example, at the provincial level, “electronic wallets” on SIM cards are being tested, which allow transactions to be made without the Internet. According to some data, 12 million transactions were made in this way in 2023.
For Tatarstan, it is possible to develop a partnership with telecom operators — the introduction of SIM cards with support for the digital ruble together with Tattelecom, MTS and Beeline. This is especially relevant for areas where 4G coverage is unstable.
When commercial banks are involved in the project, it is possible to introduce offline terminals in stores — devices that work similarly to POS systems, but with support for offline transactions via Bluetooth or NFC.
Offline payments require the use of “closed” blockchain networks with data synchronization when a connection appears. Chinese developers use hybrid algorithms, where part of the data is stored on the device, and part in secure cloud storage. For Tatarstan, it is critical to ensure the cybersecurity of such solutions in order to exclude double write-offs or transaction forgery.
Mass events as a testing platform
China is actively using major events to popularize e-CNY. For example, at the 2022 Winter Olympics in Beijing, the digital yuan became the main currency for paying for tickets, merchandise, and food. This allowed not only to test the technology but also to demonstrate advantages of an international audience. Following the event, the transaction volume exceeded 2 billion yuan.
Tatarstan can integrate the digital ruble into the ticket sales system, equipment rental and food in the republic's mass sports system. For example, a 10% cashback for payment with a digital ruble.
The digital ruble can be distributed at annual Sabantu” — creating temporary digital wallets for guests with a pre-set bonus balance.
For success, it is necessary to train personnel — cashiers, volunteers, guides. Conduct an information campaign, in particular, distribute QR codes with instructions on the territory of events.
The experience of the 2018 FIFA World Cup in Russia showed that non-cash payments make up to 70% of transactions at mass events. The digital ruble can increase this figure to 90%, reducing the burden on the banking infrastructure.
Gamification and cashback: how to attract users
One of the problems of e-CNY is the low activity of users after the completion of pilot programs. China solves this problem through gamification and loyalty programs. For example, in Shenzhen, users received lottery tickets for transactions in e-CNY, and in some regions, NFT rewards for achieving financial goals were introduced.
In Tatarstan, it is possible to introduce a 5-7% cashback for paying for transport, housing and communal services, or education. For example, schoolchildren could receive bonuses for successfully passing exams.
The digital ruble can also contribute to the development of culture in Tatarstan. NFT collections are tokens that can be exchanged for excursions to Kazan museums or discounts in restaurants.
Successful examples from other industries include Sberbank, which has implemented a Thank You programme where points can be spent in partner stores. A similar mechanism is possible for the digital ruble.
In Estonia, the e-Residency system uses tokens to access government services — a similar approach can be adapted for business.
International settlements: Prospects for Tatarstan
China is actively testing e-CNY for cross-border settlements. For example, within the mBridge project, the digital yuan is used for settlements with Hong Kong and the UAE. This opens up new opportunities for international trade and investment.
As part of the digital ruble pilot, Tatarstan can offer a settlement bridge with Kazakhstan and Belarus — settlements in digital rubles for the export of petrochemical products and IT services.
Integration within the EAEU allows the creation of a single digital payment system for union members.
The republic has impressive economic potential for this. In 2022, Tatarstan's exports amounted to $15.6 billion, of which 60% were petrochemicals. The digital ruble can reduce settlement times from 3-5 days to several minutes, which is especially important for transactions with Asian partners. In addition, reducing currency conversion fees (from 2-3% to 0.5%) will increase the margins of enterprises.
The digital ruble is a chance for Tatarstan not only to strengthen its position as an innovation center, but also to become an example for other regions of the country. As Rustam Minnikhanov noted: “We are ready to become a testing ground for breakthrough ideas that will change the future of Russia.”
