The Central Bank of Russia has announced its business model for the digital ruble (CBDC), which aims to make all transactions free by the end of 2025. The first banks and merchants are set to launch by July 1. The central bank plans to generate revenue from managing the system.
However, the Association of Russian Banks (ABR) has raised concerns about potential deposit outflows and the hefty setup costs for banks, estimated at 100 million rubles ($1 million) each, which poses a challenge for smaller banks with limited capital.
