Bank of Russia says Digital Ruble will Help Businesses

Bank of Russia says Digital Ruble will Help Businesses & Eliminate Financial Middlemen

The central bank of Russia has said that it wants its digital ruble to do the impossible. It wants the digital currency to cut out financial middlemen and at the same time help businesses. Bank of Russia’s chairperson, Elvira Nabiullina, has said that their digital ruble will help businesses by cutting their costs but at the same time it will also bring down the profits of the commercial banks. During a recent meeting of a non-governmental organization of small and medium-sized businesses, “Opora Russia”, Nabiullina said that a digital ruble has will potentially curtail the commissions and transaction fees of the commercial banks, which will, in turn, boost the businesses’ bottom line but also cut the profits of commercial banks While underscoring that the development of a central bank digital currency is a natural development, it’ll make financial services more streamlined. She went on to say: “This is a natural move in the financial system development: financial intermediaries should become less burdensome for the economy and earn money with new products and services instead of profiting from its monopoly and lack of alternatives … We believe that small and medium-sized businesses should definitely benefit from this.” Chairperson of the Russian central bank also made it a point to say that their digital ruble comes with many benefits such as faster payments, more reliability, and enhanced security. Nabiullina noted that they are considering many financial models so that they can include their digital ruble in them along with other pillars of the Russian financial framework such as the central bank, commercial banks, and interaction of clients. Her comments came within a fortnight after Russia’s central bank released their CBDC on October 13, 2020. .