Antihype on money: Russian Regulator Wants to Get Rid of Banks with Digital Ruble
Main page Opinion, Russia, Banking, Central Banks

This article is brought to you by a Russian Telegram channel "Antihype on money," an analytical channel about all economic hype trends and their triggers.

What happened: The Central Bank of the Russian Federation is again considering the possible issue of the digital ruble. If issued, the currency will circulate along with cash and non-cash rubles. The transfer of the digital ruble will occur through the movement of the digital code from one electronic wallet to another, like cryptocurrencies, the regulator says. The digital ruble will reportedly help the central bank to track the movement of funds and reduce the risks of money laundering and misuse.

What really happened: According to EXANTE Co-Founder, Anatoliy Knyazev, the regulator, in fact, proposes to open direct accounts and carry out settlements of end users within it, removing traditional banks from the chain.

The intermediary function of banks and payment systems is less and less needed by both parties:

  • It is getting harder and harder for banks to meet compliance requirements. They are increasingly forced to refuse clients not only in transactions, but even in opening accounts: the margin of the transactional business is low, and the regulatory risks are huge.
  • Despite all the regulations, the central bank still does not sufficiently control the risks important for it.

In addition, it should be understood that the digital ruble has nothing to do with cryptocurrencies. It will be used in the same way that cash and bank transfers are used among cryptocurrency advocates. A single emission center represented by the central bank contradicts the principle of cryptocurrencies, and the project has nothing to do with cryptocurrencies yet.

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