The Central Bank of Russia, which is piloting a central bank digital currency (CBDC) called the 'digital ruble', has emphasized that it has no intention of eliminating cash.
According to Russian state broadcaster TASS on the 15th (local time), Central Bank of Russia Governor Elvira Nabiullina said at a press conference after a meeting of the bank's board of directors that "the digital ruble is a new payment option," adding that "physical money will not disappear."
"The central bank is providing options so that people can choose how to pay," Nabiullina explained.
The head of Russia's central bank stressed that cash demand remains significant, saying it will continue to be used as a means of payment.
He added that the monetary authorities are continuing to explore ways to develop cash, including designing new banknotes.
The central bank plans to restrict the digital ruble from being used as a substitute for cash, bank accounts, or deposits.
To prevent bank deposit outflows and worsening lending, the plan is to prevent interest from accruing on the digital ruble and set a limit on its holdings.
Meanwhile, the central bank plans to establish a QR code-based system to facilitate payments using the digital ruble. Offline payment capabilities will also be added in the second phase of the pilot operation. Support for foreign currency exchange and the opening of non-resident wallets will also be provided.
Elvira Nabiullina, Governor of the Russian Central Bank, said during an intergovernmental meeting with President Vladimir Putin on July 19 that she expected "mass adoption of the digital ruble in early 2025."
Anatoly Aksakov, Chairman of the State Duma Financial Markets Committee, predicted that the digital ruble will be used for cross-border payments by 2025.
