NewsletterJust-In: Russia Likely To Delay Its Digital Ruble Plans, Here’s Why
Gazprombank, a bank among 15 Russian banks participating in the Digital Ruble central bank digital currency (CBDC) tests, stated the launch of the Digital Ruble should be done gradually. The bank believes the financial system needs more time to adapt to changes after the introduction of Russia’s central bank digital currency.
Gazprombank Pushes for Gradual Introduction of Digital Ruble
According to a study by leading consulting company Yakov and Partners, Russia’s banks could potentially lose $3.5 billion (250 billion rubles) in five years after the introduction of the Digital Ruble.
Gazprombank, a subsidiary of state-owned gas energy firm Gazprom, asserts losses of banks due to the introduction of the Digital Ruble should be minimized. While the bank admits the importance of the Digital Ruble rollout, it suggests a gradual introduction of the Digital Ruble.
“Obviously, banks will have to somehow minimize their losses. Therefore, it is very important to take into account these risks and move towards the launch of the digital ruble gradually in order to give the financial system enough time to adapt.”
The reason is that the reduction in acquiring commissions is more likely to lead to higher profits for retailers, rather than lower prices for end consumers. However, Gazprombank noted that the Digital Ruble rollout will increase the transparency of all financial transactions in Russia. It will positively affect the country’s banking system and the economy as a whole.
The CBDC project has been going on for several years and testing on the Digital Ruble is planned to begin this year. Meanwhile, preliminary tests are underway with 15 Russian banks, including Gazprombank.
The central bank and Finance Ministry settled on using crypto assets in international payments last year. The aim is to support trading between Russia and other countries. The country faced financial and trade sanctions after Russia’s invasion of Ukraine in late February 2022.
Also Read: Dormant Bitcoin Wallet Wakes Up After 11yrs And Makes 200,000% Profit
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Base–Solana Bridge Goes Live With Chainlink Integration, Boosting Cross-Chain Liquidity
- Bitwise CIO Calls Strategy Bitcoin-Sell Narrative “Flat Wrong” in New Client Memo Note
- MetaMask Integrates Polymarket as Crypto Prediction Markets Gain Ground
- Breaking: CFTC Greenlights Spot Crypto Trading on Regulated U.S. Exchanges
- TradFi Attack On Crypto? Ken Griffin’s Citadel Asks SEC to Tighten Rules on DeFi Protocols
- Can Solana Price Bounce Back to $200 by End of 2025?
- Cardano Price Prediction Ahead of Midnight Sidechain Launch — Is ADA Headed for $0.85?
- Sui Price Eyes $2+ as SEC Approves First 2X Leveraged SUI ETF
- Pi Network Price Shows Signs of Recovery as Unlock Rate Cools
- Bitcoin Price Could Break $100k as Odds of 3 Rate Cuts Hit ATH
- XRP Price Prediction as ETF Buyers Add $50.27M to Holdings
