The Central Bank of Russia Expects Digital Ruble to Coexist with Other Payment Methods
Digital Ruble Launch to Complement Existing Payment Methods
The Central Bank of Russia has reassured the public that the introduction of the digital ruble, its central bank digital currency (CBDC), will not overshadow other non-cash and cash payment methods. During a recent webinar, Alla Bakina, the director of the bank’s national payment system department, emphasized that the digital ruble aims to broaden consumer payment options and stimulate healthy competition among various payment methods.
Non-Cash Transactions Dominate Russia’s Payment Landscape
Bakina highlighted that non-cash transactions already account for over 80% of all payments in Russia. The digital ruble seeks to enhance this trend by offering an additional payment avenue to consumers. It will coexist with existing options such as cash, cards, bank accounts, digital accounts, mobile apps, and pay services.
No Payment Limits for Digital Ruble
Bakina further confirmed that there will be no restrictions on payment amounts made with the digital ruble. This move aims to provide flexibility and convenience to users. Furthermore, the Central Bank of Russia acknowledges the continued relevance of cash in certain situations, aligning with the views of its governor, Elvira Nabiullina. Nabiullina has emphasized that cash remains an essential payment method and revealed plans to develop a new 1,000-ruble bill.
Digital Ruble Pilot Trial Shows Promise
The digital ruble project commenced its pilot trial in August, with the participation of 13 banks. The project’s progress has been encouraging, prompting plans for its expansion next year. The trial will involve more participants and test additional use cases for the digital currency in 2024, as revealed by Nabiullina.
This rewritten article provides a comprehensive overview of the Central Bank of Russia’s stance on the digital ruble. It emphasizes that the introduction of the digital ruble aims to complement existing payment methods, rather than replace them. The article also highlights the dominance of non-cash transactions in Russia and the flexibility of the digital ruble with no payment limits. The pilot trial’s success and plans for future expansion further demonstrate the bank’s commitment to exploring the potential of the digital ruble.
