🚨 Central Bank of Russia reveals its strategy for the digital ruble 💸
The Central Bank of Russia has presented its business model for the digital ruble, with free transactions by the end of June 2025, Moscow. The Central Bank of Russia has detailed its plan to implement the digital ruble, the central bank digital currency (CBDC). The first banks and merchants are expected to start operating with the digital ruble from July 1, 2025.
This announcement marks a significant milestone in the adoption of digital currencies at a national level. The digital ruble will become an alternative to traditional currencies, with the potential to transform the Russian financial system. However, the Association of Russian Banks (ARB) has expressed concerns about implementation costs and the risk of deposit outflows.
1. High implementation costs: The installation cost for each bank is approximately 100 million rubles (1 million dollars), which represents a significant burden for some banks with limited capital.
2. Concerns about deposit outflows: The ARB fears that the introduction of the digital ruble could lead to massive deposit outflows, affecting financial stability.
3. Central bank revenues: Despite the concerns, the Central Bank plans to generate revenue through the operation of the digital ruble system.
The implementation of the digital ruble could redefine the financial landscape of Russia, but it is crucial to address the banks' concerns to ensure a smooth and secure transition.
