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Is the Digital Ruble Set to Bring an End to Traditional Banks in Russia?

Russian lawmaker Anatly Aksakov argued that Russia’s new CBDC might cause the traditional banking system to “fade away.”

The digital Ruble may bring traditional Russian banks to an end.
Creator: hank5

MOSCOW – The digital ruble, introduced in Russia recently, may lead to a decline in the traditional banking system, according to Anatoly Aksakov, the head of the State Duma Banking Committee. Aksakov believes that as blockchain technology and the digital ruble develop, the role of traditional banks will diminish over time. However, existing banks could still find a place in the digital financial asset infrastructure.

Elimination of Banks Will Make Room for the AI

Aksakov predicts that in the future, people may be able to deposit money and get loans directly in digital rubles, bypassing traditional banks. This could make transactions faster and more efficient, potentially eliminating the need for banks as intermediaries.

Aksakov said that such a situation would give rise to a highly technologized system where decisions are automated, reducing human involvement in financial transactions.

Aksakov stated:

“My personal opinion is that after some time we will make a decision that deposits can be placed in the information system of the Central Bank and loans can be issued since life requires it. Because it will be faster and, perhaps, more efficient [...] Decisions will be made by a robot - a person is not needed there. Perhaps a bank is not needed as an institution, since the digital ruble will be very much technologized,”

The Digital Ruble

The digital ruble is a form of digital currency issued by the Bank of Russia, akin to physical and electronic rubles. It can be stored in an electronic wallet on the Central Bank's platform, with a daily spending limit of 200,000 rubles.

It was set to start pilot testing on August 15, following approval from President Putin. During the testing phase, 15 Russian banks will offer digital wallets for people to use Digital Rubles. However, these banks can't create new wallets on their own; they will only help distribute wallets made on the Central Bank's platform. This digital currency aims to modernize Russia's financial system and make digital transactions easier for its people.


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