Gazprombank Advises Careful Rollout of Russian CBDC to Minimize Losses
Gazprombank has advised the Russian central bank to launch its digital currency, the digital ruble, in a gradual manner in order to minimize the losses that banks may experience, according to a report by RBC.
The bank believes that the digital ruble will decrease banks’ income due to the reduction in commissions as retailers will no longer be as dependent on banking services, according to Russian news outlet RBC.
Instead, the lender thinks this will result in higher profits for retailers and not lower consumer prices. Analysts estimate that banks may face around 50 billion rubles in yearly losses once the digital currency is launched, while retailers are projected to save 80 billion rubles yearly.
Russia has been exploring the possibility of a central bank digital currency for some time and is currently undergoing a trial run with 15 banks, including Gazprombank.
The bank also stated that introducing a digital currency would increase the transparency of financial transactions, which it views as a positive development for the economy and the banking system.