Russian MP Anatly Aksakov believes traditional banks could “disappear”.

Anatoly Aksakov, chairman of the Russian State Duma Committee on Financial Markets, said that the central bank digital currency (CBDC) digital ruble could make traditional banks redundant, local media Ria reported on September 5.

Aksakov reportedly said at a conference at media forum AIF Media that these traditional financial institutions will eventually "disappear" and find new applications as part of the infrastructure for digital financial assets.

“As for the role of banks, I think their role will fade away in the future as blockchain develops… Maybe banks will no longer be needed as an institution, because the digital ruble will be highly technological,” he said.

The lawmaker further noted that Russia’s top bank has fixed the daily limit for the use of the digital ruble at 200,000 rubles.

“One of the reasons is the separation of the banking system from cash, as bank personnel will have to turn to the central bank’s information system,” he added.

CBDC and banks

With the rise of blockchain, many traditional financial institutions and central banks around the world have embraced the technology and integrated it into their systems as central bank digital currencies (CBDCs) and other use cases develop.

However, an IMF report warned that while CBDCs hold great promise, they could have unintended consequences if not carefully designed, particularly for monetary policy.

The report states:

“CBDCs can trigger changes in retail, wholesale, and cross-border payments, with negative spillover effects on monetary policy through their effects on money velocity, bank deposit disintermediation, bank reserve volatility, currency substitution, and capital flows. The most vulnerable countries are those with banking systems dominated by small retail deposits and demand deposits, low levels of digital payments, and weak macro fundamentals.” #俄罗斯  #数字卢布