The key figure behind Russia’s central bank digital currency initiative has resigned from the central bank, ending her leadership role in the country’s digital currency initiative.

A key mastermind behind Russia‘s central bank digital currency — also known as the digital ruble — and the country’s domestic digital payments infrastructure known, Olga Skorobogatova, has stepped down from her post as first deputy governor of the Bank of Russia, the regulator announced in a press release.

While the reasons behind Skorobogatova’s resignation remain unclear, Elvira Nabiullina, head of the central bank, praised her strategic vision, noting that the “true value” of the Mir National Payment System infrastructure, developed under Skorobogatova’s leadership, “became evident in 2022.”

“Her strategic vision and ability to implement complex technological solutions were instrumental in creating an advanced payment infrastructure in Russia, one that the country can rightfully take pride in. The true value of this infrastructure became evident in 2022.”

Elvira Nabiullina

Skorobogatova, who joined the central bank in 2014 after an executive role at the Russian arm of Société Générale, was instrumental in the rapid digitalization of Russia’s banking sector. She led efforts on the digital ruble, a state-controlled digital version of the Russian ruble, which is designed to “serve as an additional means of payment and transfer that will not be subject to banking restrictions such as fees and limits,” according to the central bank.

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In an October 2020 consultation paper, the central bank reassured citizens that the digital ruble will complement, not replace, existing cash and non-cash rubles in circulation. In contrast, China, a key benchmark for Russia’s digitization efforts, has begun paying civil servants in Changshu state salaries using its own CBDC, the digital yuan, to encourage the adoption of the state-controlled currency.

In September 2022, the U.S. Treasury Department imposed sanctions on Olga Skorobogatova, citing her role in enabling Russia’s efforts to circumvent international sanctions. The Office of Foreign Assets Control pointed to the risks linked with the Mir payment system and Russia’s broader financial infrastructure, which had been increasingly targeted by sanctions amid rising geopolitical tensions.

Read more: Russia’s central bank might legalize stablecoins for trades with China: report

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