E Russia To Release Digital Currency Next Year

The Bank of Russia's plans to introduce the digital ruble next year, but the release so far caused more fear in the financial community than bright hopes. This conclusion can be drawn from the results of the first discussions of the Report of the Central Bank "Digital Ruble" by representatives of the financial market, held on Monday. 

The digital ruble will force banks to adjust their business models, improve non-cash payments, but at the same time will not become a threat to the very existence of credit organizations - banks both existed and will exist, will simply improve banking services and increase customer satisfaction.

Photo by Michael Parulava on Unsplash

What is being discussed?

So far, two models of the implementation of the digital ruble are being discussed. The first provides that the Bank of Russia itself opens digital wallets to all customers, including citizens. The second is that it essentially assumes that digital money should be distributed in the same way as paper money: the Central Bank will supply them with banks, and those - to open accounts to their customers.

Banks prefer the model, where the regulator opens wallets for banks, and they withdraw the currency to their customers already through individual wallets associated with personal accounts, notes the chief analyst of Alor Group Alexey Antonov. In this case, the Central Bank will monitor the calculations on the digital ruble not directly, but through banks, then for banks, the level of responsibility will be even higher, but at the same time, the banking sector will be able to receive additional profits for such operations.

If they implement the scenario under which the Central Bank will independently regulate the circulation of this currency and create a platform through which it will open wallets to customers, then for banks it will mean the outflow of liquidity to this new system, the expert believes.

Problems associated with the release

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