At the end of last month the Bank of Russia shared the business model for its central bank digital currency (CBDC). All digital ruble transactions will be free through to the end of 2025, with the first batch of banks and merchants expected to go live on July 1. The central bank plans to earn fees for operating the system. Meanwhile, last week at a hearing in Russia’s State Duma, the Association of Russian Banks (ABR) said that banks are unhappy.
They are concerned with the potential outflow of bank deposits and the costs of implementation. Russia is not planning CBDC holding limits. According to ABR chair, Anatoly Kozlachkov, the set up cost is around 100 million rubles ($1 million) per bank, Info24 reported. He noted that some banks only have $3 million in capital. Senior legislator, Anatoly Aksakov, who chairs the Financial Markets Committee of Russia’s State Duma, is irritated by the pushback from banks. Given Mr Aksakov’s previous remarks, it’s surprising banks aren’t objecting harder.
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