The central bank of Russian federation is setting upwards a group of banking institutions to test its central banking company digital currency (CBDC) next year.

On Tuesday, the Depository financial institution of Russia officially announced the institution of the first airplane pilot group for testing the digital ruble, bringing together 12 Russian banks.

The airplane pilot members include Russia's largest banks like state-backed Sberbank and VTB, besides as major private banks like Tinkoff Bank. Other participants include commercial bank Alfa Bank, Gazprombank, Promsvyazbank, Rosbank, Ak Bars Banking company, Dom.RF, SKB-Bank, TKB and Soyuz banking company.

The bank reaffirmed Russia's plans to complete a prototype digital ruble platform by the end of 2021 and roll out testing in January 2022. The kickoff phase of testing will involve issuing the digital ruble and several other operations. The Banking company of Russia then plans to extend the number of participants and range of pilot activities.

Related: Russian central bank 'short-sighted' regarding crypto, lawmaker says

Bank of Russia's kickoff deputy governor, Olga Skorobogatova, said that the digital ruble will increase the availability of payments while reducing costs.

The Bank of Russia officially announced its CBDC plans, issuing a consultation paper on the development of a digital ruble in October 2020.

The cardinal bank'south prioritization of the digital ruble over private cryptocurrencies has drawn the ire of some loftier-profile figures, including prominent oligarch Oleg Deripaska, who recently argued that the bank should provide a "real fiscal instrument enabling independence in foreign trade settlements."

The CEO of Tinkoff said that the central depository financial institution's policies were preventing Tinkoff from offering crypto trading services.