Bank of Russia Governor Elvira Nabiullina: Giving Russians More Payment Choices
In a recent press conference, Elvira Nabiullina, Governor of the Bank of Russia, emphasized that the central bank has no plans to eliminate cash. The focus is on providing more payment options to the Russian population. Nabiullina stated that people should have the freedom to choose how they make payments and that the bank is working towards presenting these choices.
Despite the development of digital ruble, Russia’s CBDC, cash will remain a viable payment tool due to its continued demand. In fact, the Bank of Russia is even designing a new series of banknotes. The digital ruble is not intended to replace bank accounts or deposits, but rather to be used for local and cross-border settlements.
Digital Ruble as a Payment Tool
To avoid competition with traditional banking services, the Bank of Russia has set limits on the amount of digital rubles that can be stored in accounts. Additionally, funds held in digital ruble accounts will not accrue interest. It is expected that by 2025, the digital ruble will facilitate cross-border payments.
The digital ruble will introduce a QR-based payment system for local transactions, while offline payments can be made by transferring funds to a separate wallet. Testing for offline payments is scheduled for 2024 in the second stage of the digital ruble pilot. Governor Nabiullina predicts that mainstream adoption of the digital ruble will occur in 2025.
Hot Take: The Future of Payments in Russia
The Bank of Russia’s Governor Elvira Nabiullina has emphasized the importance of choice in payment methods for Russians. While the digital ruble is being developed as a new payment tool, cash will continue to be available due to its significant demand. The digital ruble is not meant to replace traditional banking services, but rather to complement them by facilitating local and cross-border settlements. With the introduction of a QR-based payment system and plans for offline payments, the digital ruble aims to provide convenience and flexibility. It is expected that by 2025, the digital ruble will gain widespread adoption in Russia’s payment landscape.
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