Russian Banks ‘Fighting Back’ Against Digital Ruble – Report
According to a recent report in Russian newspaper Izvestia, Russia’s leading banks are sending a message to the government: they don’t want the Digital Ruble. The report states that the banks are actively pushing back against the proposed digital currency due to their fear of a loss of their power over the market. Reports even suggest that some of the banking leaders have proposed their own electronic payment systems as an alternative.
The digital ruble is just one of the government’s efforts to modernize its financial sector. It has been proposed to help the country catch up with international payment systems such as Libra and China’s digital yuan. However, the banks are resistant to the initiative as they believe that the digital ruble would allow the government to control the money supply and eliminate their current hold over the market.
The banks’ fear is understandable. If the digital ruble is introduced, they stand to lose business and see their profits drop. But, should they play ball with the government, they could end up benefitting from a new cashless system. The government, for its part, is pushing back on the banks’ demands and is trying to allay their fears.
Regardless of how the situation plays out, it is clear that Russia’s banking sector is not going down without a fight. As the move towards digital currencies becomes more and more inevitable, banks will have to learn how to adapt if they want to remain competitive.