According to a Russian lawmaker, central bank digital currencies (CBDCs) and blockchain technology will likely displace traditional institutions.
RIA reported that Anatoly Aksakov, chairman of Russia’s parliamentary financial committee and a prominent Bitcoin skeptic, has predicted that the traditional banking system will “fade away” by adopting the digital ruble.
“I believe the role of banks will diminish in the future due to blockchain technology,” Aksakov stated at an AIF Media media forum meeting.
Aksakov stated that private banks could participate in the infrastructure of digital financial assets and the digital ruble.
“The traditional role that they served will gradually fade away.”
Aksakov also mentioned that the Bank of Russia has imposed a daily limit of 200,000 rubles, or approximately $2,000, on digital rubles. “One of the reasons is the separation of the banking system from money, as bank employees will be required to move to the central bank’s system,” he explained.
Local banks have become increasingly concerned about the potential repercussions of the digital ruble as Russia has progressed with its CBDC rollout, introducing the first trials in August 2023.
Last month, the Association of Russian Banks reportedly sent a letter to the Bank of Russia, asking the regulators to clarify whether it would compensate creditors for providing access to the digital ruble platform. The banks also requested that the central bank prohibit mandating citizens establish a digital ruble account.
Olga Skorobogatova, the first deputy governor of the Bank of Russia, stated on August 1 that adopting the digital ruble would require banks to implement “more interesting loyalty programs.”
“In this competition, the consumer will win in any case, as they will be able to use the entire range of non-cash payment methods,” stated Skorobogatova.
Amid the increasing adoption of CBDC and blockchain technology, Russian institutions are just some of the ones worried about their future. In mid-August, the Colombian central bank recommended limiting CBDC holdings and spending to help commercial banks maintain their function as value-storage service providers.