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Russia Prepares Digital Ruble Rollout Amid Banking Sector Concerns Russia Prepares Digital Ruble Rollout Amid Banking Sector Concerns

Russia is preparing to launch its central bank digital currency (CBDC), the digital ruble, but there are worries in the financial industry that the new system may impact commercial bank liquidity.

Potential Impact on Banking Sector Liquidity

Russian financial experts have voiced concerns that the digital ruble may reduce commercial bank liquidity and funding. Professor Tatyana Rozhdestvenskaya highlighted legal issues, noting that as non-cash money, current laws would need revising to allow issuing loans or accruing interest on digital ruble holdings. comnews.ru/content/230832/2023-12-21/2023-w51/1008/cifrovoy-rubl-povliyaet-likvidnost-bankov

The Central Bank acknowledges liquidity risks for banks but claims it has tools to compensate. However, some warn that while pilots may not have major impacts, a national rollout likely would. Maxim Bashkatov suggested incentives may be needed for public adoption, but none currently exist. No mandatory digital ruble payment categories indicate adoption would be gradual.

Planned Pilots and Regulation

The Central Bank is interested in using the digital ruble for cross-border trade, potentially starting with Belarus and Kazakhstan. It may launch a second pilot phase before year-end, testing business transfers in 2024. center.business-magazine.online/fn_1422213.html

Officials criticize the State Duma’s limited role in CBDC pilots, calling for progress in regulating digital assets, especially in cross-border payments. Russian industrial miners may be allowed to sell crypto abroad as “export products”.

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