Gazprombank, subsidiary of Gazprom, the main Russian gas company, He publicly proposed giving banks more time before implementing the digital ruble. The country’s central bank-issued digital currency (CBDC) project has accelerated due to global financial sanctions amid geopolitical tensions.
As reported by local media on February 7, Gazprombank, one of the 15 banks participating in the CBDC pilot project, issued a public statement suggesting to proceed with caution regarding the interests of traditional banks:
“It is imperative that banks take steps to mitigate potential losses. It is therefore crucial to recognize the potential risks associated with the transition to a digital ruble and approach its implementation cautiously, giving the financial system sufficient time to adapt.”
However, the statement admits that CBDC will help increase transparency throughout the Russian financial system and economy.
The Russian branch of McKinsey estimated the potential losses of traditional banks from the implementation of CBDC at about USD 3.5 billion (250 billion rubles) in five years.. At the same time, the consultancy estimated the benefit of retailers at USD 1.1 billion annually.
Work on a CBDC in Russia began in 2020. The digital ruble is currently being tested for settlement with banks and is expected to be completed this year. According to the latest monetary policy update from the Bank of Russia, the authority will start connecting all banks and credit institutions to the digital ruble platform in 2024.
The Central Bank of Russia has also started to develop a cross-border settlement system using a CBDC. The country is facing increasing financial and trade sanctions since the escalation of the Russo-Ukrainian war, when it launched a full-scale invasion of Ukraine in late February 2022.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.