The digital ruble, Russia's foray into Central Bank Digital Currencies (CBDCs), is gaining momentum. Local fintech companies are now joining the pilot program, signaling an expanding scope for the project.

According to Russian media outlet Cnews, SimbirSoft and Sinara Lab have been enlisted by the Central Bank and its banking partners. These firms will play a crucial role in "implementing the digital ruble software products in online and mobile banking applications." This move hints at Russia potentially drawing inspiration from China's successful CBDC model.

Similar to Russia's approach, China integrated its digital yuan with both state-owned and neobanking platforms.

Sinara Lab, a fintech subsidiary of the Sinara banking group, boasts a client list that includes Sinara Bank, Gazenergobank, and Delobank. Headquartered in Yekaterinburg, one of the pilot cities for the digital ruble, Sinara Lab primarily deals with remote banking systems. However, in this instance, they'll be collaborating with the Central Bank on the crucial task of "integrating" existing bank apps with the digital ruble.

SimbirSoft, based in Ulyanovsk, brings app development expertise to the table. They previously developed mobile apps for financial institutions, including a stint with the Bank of Japan. Their inclusion in the pilot program fuels speculation about the Central Bank potentially building its own dedicated app for the digital ruble, mirroring China's approach with the digital yuan app.

While officials from both companies emphasize their focus on private-sector CBDC adoption for now, their contributions hold broader implications. Sinara Lab highlights the potential of their solutions to streamline adoption for banks, slashing the timeframe from "an average of 6-9 months to 2-4 months."

SimbirSoft's Dmitry Peterson echoes the collaborative spirit. He acknowledges the technical complexities involved from a bank's perspective, particularly regarding protocol development aligned with the Central Bank's requirements. "As part of this partnership, we will help Sinara Lab to achieve a common goal – the effective implementation of the digital ruble in the [Russian] banking sector," Peterson concludes.

With 17 more banks joining a "second phase" of the pilot announced in February, a nationwide rollout of the digital ruble by 2025 appears increasingly likely. The inclusion of these experienced fintech firms signifies a vital step towards that goal.