The Central Bank of Russia (CBR) is not currently planning to create a proprietary mobile application for the upcoming digital version of the national fiat. The regulator is convinced it’s going to be cheaper and more efficient if Russians use the apps of commercial banks they already know well. Established banking applications would allow Russians to quickly acquaint themselves with the benefits of the digital ruble, according to its issuer. Providing access to the central bank digital currency (CBDC) through existing channels should also keep costs low, claims the monetary authority in Moscow, while potential users fear the opposite.
Russian Banks to Offer Digital Ruble Access Via Their Apps
Answering queries about the digital ruble on Telegram, the financial authority said it’s not considering a separate app for several reasons:
First, we want to preserve the existing user experience for the convenience of citizens and businesses. To achieve this, the digital ruble is being integrated into the banking apps that everyone already uses.
This will allow people to access new functionality in familiar interfaces, which will help them quickly appreciate the benefits of the new national currency and make it a tool for payments and transfers, the CBR added in a recent post. Quoted by the crypto news outlet Bits.media on Monday, the bank also insisted that utilizing current banking channels instead of developing new ones significantly saves resources for all participants. It made the comments in response to a number of reasonable questions, such as why keep using the services of banks to work with the digital ruble, when providing direct access to the CBDC platform would skip banking fees, bring savings to the whole society, and be safer due to fewer transactions.
Because, as someone highlighted, if digital rubles are transferred to a bank account and then withdrawn as cash, the respective institution will charge a commission. The central bank has actually confirmed the citizen’s concerns:
Once you transfer digital rubles to your bank account, they will become non-cash funds in your account at that specific bank. The terms for withdrawing them are usually specified in the agreement with the bank.
Could you, please, tell me if it makes sense for an ordinary person who isn’t knowledgeable about financial assets or the market to convert non-cash rubles into digital ones, another person asks. The CBR quashes their expectations, too:
Please note that the digital ruble is not an investment or a tool for passive income – and you won’t be able to earn interest on your digital ruble account balance. It’s a digital form of our national currency, which can be used primarily for payments and transfers.
Need for a Digital Ruble in Doubt Ahead of Full-Scale Launch
The Bank of Russia has been promoting its digital ruble as the third form of Russian fiat, complementing, not substituting, cash and electronic “bank” money. It has also touted the CBDC as a means to increase the efficiency and security of payments. At the same time, it has been trying to alleviate concerns in Russian financial circles that the state-issued coin will undermine the traditional banking system, including the profits generated by institutions involved in the industry.
The result is a mix of growing doubts regarding the need for a government-controlled digital currency, from an economic standpoint, and fears among Russian citizens that its main purpose is to give authorities more influence over financial flows in the country. Among the skeptics is the chief executive of Russia’s largest bank, Sberbank CEO German Gref, who stated earlier this year he was struggling to see the potential benefits of a digitalized Russian ruble.
In November, a top advisor to CBR Governor Elvira Nabiullina, Kirill Tremasov, admitted its advantages for consumers are “not obvious” to him either. Meanwhile, a poll published in October showed that for almost half of Russians, the digital ruble is merely a tool for government control over their finances.
However, the central bank has been pushing for its adoption, especially after a call from President Putin this summer for the wide implementation of the CBDC. The latter has been in development for quite some time, with testing going on for three years now. An initial plan to launch it for public use in 2025 was postponed in order to allow banks and firms to properly prepare. According to the latest timetable, proposed by the CBR in June, the digital ruble will be introduced in several stages, starting from September 1, 2026.