Central banks in many countries are currently experimenting with digital currencies, including Japan, Canada, Russia, and the USA. The Bank of Russia held a meeting with major banks on 26 November to seek feedback on the prospects for introducing the digital Ruble. First Deputy Chairman Olga Skorobogatova represented the central bank and met with representatives from Sberbank, VTB, Gazprombank, Moscow Credit Bank (MCB), Post Bank, Russian Standard Bank, among others.
Banks are concerned about the consequences of going ahead with the Russian digital currency.
According to local reports, several bank executives are concerned about the consequences of going ahead with the Russian digital currency. According to a banker present during the session, the project lacks a clear idea concerning credit institutions. Other bankers claimed that they expect “more specifics” from the Central Bank of Russia on the question of whether the digital currency will serve as an alternative to paper cash or the current electronic payment system. It was further reported that most commercial banks “don’t take seriously” the idea that the digital Ruble would become the third form of the domestic currency.
“Digital Ruble should combine the capabilities of cash and non-cash currency.”
According to local reports, the Chairman of the Board of the Russian Standard Bank, Alexander Samokhvalov, said that they would support a model in which the service component can be implemented in banks since they “have sufficient infrastructure to maintain it. In a model where the regulator has full control of the digital Ruble accounts, it would leave “no room” for banks and would even cause a bank run, he added. Earlier, the central bank of Russia had proposed that the digital Ruble should combine the capabilities of cash and non-cash currency; it should allow both online payments to be made remotely and offline purchases.