Belarus to launch digital ruble by 2026 to boost cross-border trade

Belarus is planning to introduce a central bank digital currency (CBDC) that will enable the country to decentralize its cross-border trade and bypass sanctions. The digital Belarusian ruble (DBR) is expected to be rolled out by 2026, according to the National Bank of Belarus (NBB).

NBB develops blockchain platform for CBDC

The NBB has been working on the development of a blockchain platform for the CBDC since 2023, when it announced its intention to create a digital ruble. The bank has already created a demo version of the CBDC and is now building a platform for the coin, according to Mikhail Demidenko, the deputy head of research and strategic development at the NBB.

The bank has also been recruiting blockchain developers to work on the coin and related services. Demidenko said that the bank aims to launch the CBDC for legal entities, such as businesses, in 2025, and for the general public in 2026.

DBR to enhance cross-border payments and trade

One of the main goals of the CBDC is to decentralize cross-border payments and trade, which currently depend on the banking systems of major currency issuers, such as the US dollar and the euro. Demidenko said that the CBDC will help eliminate risks, such as sanctions, and open new opportunities for cross-border cooperation.

Belarus has been facing sanctions from the US and the EU since 2022, following the outbreak of war in Ukraine. The sanctions have affected most major Belarusian firms and banks, limiting their access to international markets and finance. The CBDC is seen as a way to overcome these challenges and boost the country’s trade and economy.

The NBB said that the CBDC will also reduce the cost of cross-border payments and transactions, as the bank will not charge any commission on them. The CBDC will be based on the Hyperledger Fabric blockchain protocol, which is designed for enterprise use cases and supports smart contracts and privacy features.

DBR to offer anonymity and decentralization

The NBB said that the CBDC will offer some degree of anonymity and decentralization to its users. Demidenko said that the bank plans to add the ability to make CBDC purchases anonymously, without revealing personal or transaction details. He also said that the CBDC will be totally decentralized, meaning that users will be able to exchange digital rubles for cash or non-cash rubles at any time.

The NBB said that the CBDC will also allow the state to better control where budget-allocated funds are spent, and to monitor the circulation and distribution of the digital currency. The bank said that the CBDC will comply with the existing legal framework and will not affect the monetary policy or the stability of the financial system.

The CBDC project is part of the broader digital transformation strategy of Belarus, which aims to leverage new technologies, such as blockchain, artificial intelligence, and big data, to improve the efficiency and competitiveness of the country’s economy and public sector.