Central Bank of Russia: Digital Ruble Launch Will Not Overshadow Other Payment Methods

The Central Bank of Russia has reassured the public that the introduction of its central bank digital currency (CBDC), the digital ruble, will not diminish the importance of other payment methods.

Non-Cash Transactions Dominate

According to Alla Bakina, director of the bank’s national payment system department, non-cash transactions currently account for over 80% of all payments in Russia. This statistic highlights the country’s existing reliance on digital payment methods. The introduction of the digital ruble is intended to expand consumer options and foster competition among various payment methods, including cash, cards, bank accounts, digital accounts, mobile apps, and payment services.

No Limits on Digital Ruble Payments

Bakina also confirmed that there would be no restrictions on payments made with the digital ruble, offering users flexibility and convenience. However, she acknowledged that cash remains relevant in certain situations, aligning with the views expressed by the Bank of Russia’s governor, Elvira Nabiullina. Nabiullina has previously emphasized the ongoing importance of cash as a payment method and revealed plans to develop a new 1,000-ruble bill.

Pilot Trial and Expansion Plans

The digital ruble project commenced its pilot trial in August, with 13 banks participating. The project’s progress was recently updated by Nabiullina, who announced plans to expand the trial in the coming year. This expansion will involve more participants and test additional use cases for the digital currency in 2024, further solidifying its role in Russia’s evolving payment landscape.

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