The National Bank of Belarus (NBB) is envisioning the launch of its new Central Bank Digital Currency (CBDC) by 2026, with the goal of decentralizing cross-border trade and payments. With most major Belarusian firms and banks facing sanctions from the US and the EU as a result of the conflict in Ukraine, the accelerated development of the CBDC is seen as a strategic move to regain trade freedom and mitigate the impact of sanctions.
Mikhail Demidenko, the Deputy Head of Research and Strategic Development at the NBB, highlighted the potential of the CBDC to revolutionize cross-border payments. He emphasized the need to reduce reliance on traditional banking systems tied to major currencies such as the dollar and the euro.
The NBB has already produced a demonstration version of the digital Belarusian ruble (DBR) and is actively constructing a platform for the coin. To support this initiative, the bank has been onboarding blockchain developers to work on the coin and its associated services. Furthermore, plans are underway to allow businesses to start using the CBDC by 2025, paving the way for a full-scale national rollout in 2026.
In addition to addressing the challenges posed by sanctions, the NBB views the CBDC as a means to minimize risks associated with cross-border trade and payment activities. The deployment of the DBR will enable the state to exert greater control over the allocation of budget funds, with the added benefit of lowering the cost of cross-border transactions and eliminating transaction fees.
The use of the Hyperledger Fabric blockchain protocol will underpin the digital Belarusian ruble, ensuring the security and efficiency of transactions conducted on the platform. Moreover, the NBB is aiming to incorporate anonymous CBDC purchases, affirming their commitment to privacy and decentralization.
Looking ahead, the NBB is committed to positioning the digital Belarusian ruble as a flexible and user-friendly currency that citizens can easily exchange for cash or non-cash rubles. The CBDC’s design and functionality prioritize cross-border cooperation and interoperability, reflecting the bank’s strategic priorities since its initial announcement of the CBDC project in October 2023.
