Sunday, July 21, 2024

Bank of Russia Governor Elvira Nabiullina: ‘Cash Will Remain Relevant’

Elvira Nabiullina, the esteemed Governor of the Bank of Russia, recently addressed the future of cash in light of the ongoing pilot program for the digital ruble within the nation. Nabiullina firmly asserted that physical currency was not on the brink of extinction, emphasizing that the introduction of the digital ruble was primarily aimed at expanding payment choices for users.

In a press conference following a meeting with the bank’s board of directors on September 15, Nabiullina expounded on the institution’s stance, clarifying that there were no intentions to phase out cash during the digital ruble tests. Rather, the focus lay on enriching the array of payment options available to the Russian populace.

According to reports from the state-owned news outlet TASS, Nabiullina expressed, “Our fundamental position is that people should be able to choose how to make payments. We are presenting choices.” She affirmed that cash would persist as a viable means of payment, citing an enduring demand for physical currency. In this regard, she elaborated, “We are still developing cash, and we are even creating a new series of banknotes with a fresh design.”

It’s important to note that the digital ruble is not positioned as a substitute for traditional bank accounts or deposits, as the Bank of Russia has set limits on the amount of digital rubles users can hold in these accounts. Additionally, digital ruble accounts will not accrue interest.

The bank envisions the digital ruble’s utility in facilitating both domestic and international transactions. Anatoly Aksakov, Chairman of the State Duma Committee on Financial Markets, anticipates that cross-border payments using the digital ruble will become commonplace by 2025.

The Russian central bank’s CBDC will incorporate a QR-based payment system for local transactions, with provisions for offline payments by transferring funds to a separate wallet. This functionality is slated for testing in the second phase of the digital ruble pilot, expected in 2024.

Nabiullina has previously stated her anticipation of the digital ruble achieving mainstream adoption by 2025.

In conclusion, the Bank of Russia, under Governor Nabiullina’s guidance, envisions a future where cash coexists with the digital ruble, offering Russian citizens a diverse range of payment options. The institution’s commitment to preserving cash’s relevance underscores its dedication to meeting the evolving needs of the nation’s economy.

Frequently Asked Questions (FAQs) about Cash and Digital Ruble Coexistence

Q: What is the stance of the Bank of Russia regarding the future of cash in relation to the digital ruble?

A: The Bank of Russia, led by Governor Elvira Nabiullina, firmly believes that cash is here to stay alongside the digital ruble. The introduction of the digital ruble is not intended to eliminate cash but rather to provide more payment choices for users.

Q: Will cash become obsolete in Russia due to the digital ruble?

A: No, cash is not on the verge of becoming obsolete in Russia. Governor Nabiullina emphasizes that there is still a significant demand for physical money, and the Bank of Russia is actively developing new banknotes with updated designs.

Q: What is the primary purpose of the digital ruble in Russia?

A: The digital ruble is not meant to replace traditional bank accounts or deposits. Its main goal is to offer a broader range of payment options, both domestically and internationally, while coexisting with cash.

Q: Are there limits on the amount of digital rubles that users can hold in their accounts?

A: Yes, the Bank of Russia has set limits on the amount of digital rubles that users can store in their accounts to prevent direct competition with traditional banking services. These accounts also do not accrue interest.

Q: When can we expect the digital ruble to be used for cross-border payments?

A: Anatoly Aksakov, Chairman of the State Duma Committee on Financial Markets, estimates that the digital ruble will be utilized for cross-border payments by 2025.

Q: What payment systems will the Russian CBDC incorporate?

A: The digital ruble will include a QR-based payment system for local transactions and provisions for offline payments by transferring funds to a separate wallet, which will be tested in the second phase of the digital ruble pilot in 2024.

Q: When does Governor Nabiullina anticipate the mainstream adoption of the digital ruble?

A: Governor Nabiullina has stated that she expects the digital ruble to achieve mainstream adoption by 2025.

Q: What is the significance of the Bank of Russia’s commitment to preserving cash’s role alongside the digital ruble?

A: The Bank of Russia’s commitment underscores its dedication to meeting the evolving needs of the Russian economy, ensuring that cash remains a relevant and viable means of payment for the foreseeable future.

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5 comments

FinanceWhiz September 19, 2023 - 8:38 pm

Nabiullina sure on point! Cash + digi ruble, both alive! Choices, choices. Mainstream digi ruble by 2025, mark calendar!

Reply
CryptoNerd September 19, 2023 - 8:58 pm

QR payments, offline wallets, digi ruble tests 2024! Nabiullina knows what’s up!

Reply
Reader123 September 20, 2023 - 2:49 am

wow, this bank lady, Nabiullina, says cash stay, no vanish! she say, digital ruble just more choice, not kill cash. cool, new banknotes too, fresh look!

Reply
EconGeek September 20, 2023 - 8:13 am

Russia’s CBDC, the digi ruble, no replace banks, no interest? ok. cross-border payments by 2025, huh?

Reply
NewsJunkie September 20, 2023 - 1:59 pm

Bank of Russia links + more info, gotta check ’em! Nabiullina and Aksakov making moves.

Reply

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