Raiffeisenbank questions the digital ruble’s leading role

The Russian banking sector will not feel significant consequences from the introduction of the national digital currency. This was stated by Raiffeisenbank chairman Sergey Monin said in an interview with RBC.

In his view, the value of the digital ruble will be limited.

“We do not see real impact on our business. Probably, in the end it will bring some value in certain needs. But I do not think that the banking system will flow into the digital ruble, into direct accounts at the central bank and so on,” said Monin.

He also said that Raiffeisenbank had applied to participate in the pilot testing of the digital ruble but did not make the first cohort.

“We are ready to participate. Perhaps we will join the next 12 banks,” added the top manager.

In April, analysts at the Raiffeisenbank Centre for Technological Innovations forecast that by 2025 up to 10% of states will have their own digital currencies in circulation and exchanges for trading such assets.

Earlier, the Bank of Russia and the Ministry of Finance confirmed plans to launch the national digital currency as a third form of money by 2030.

Testing of the new financial instrument will take place across 12 banks in the first quarter of 2022.

According to the head of the Central Bank of Russia, Elvira Nabiullina, the domestic CBDC will become a fully-fledged replacement for cryptocurrencies for Russians.

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