Digital Ruble Rollout Will Cost Russian Banks $536m a Year – Experts
Digital ruble rollout plans could cost the Russian banking sector a total of $536 million per year, financial analysts have claimed.
Per Forbes Russia, the nation’s retail sector could be in for a windfall if CBDC adoption plans go ahead as planned.
Experts said the retail market could expect to see annual profits rise to the tune of $857 million once the CBDC becomes widespread.
The Central Bank Governor Elvira Nabiullina last week confirmed that the digital ruble will roll out “no earlier” than 2025.
This comes after the Finance Ministry suggested that “all” Russians would have the chance to use the CBDC at some point this year.
Analysts from Yakov and Partners (formerly partners with McKinsey in Russia) said the digital ruble was on track to “occupy a niche in the domestic retail payments market.”
The experts said that the token would “partially take away” market share from bank card payments.
And within three to five years of “full-scale” adoption efforts, banks could start feeling the losses.
Yakov and Partners said Russian retail firms would likely embrace the coin, which will do away with interbank commission fees.
CBDC transactions are also instantaneous, unlike bank card payments, which can take several days to process.
However, Yakov and Partners added that for consumers, the “benefits” of the CBDC “are less clear-cut.”
Many will be hesitant to use the coin due to the fact that Russian CBDC wallets will not allow holders to accrue interest on their tokens.
A further blow could come in the form of cashback incentives. The experts opined that “banks will stop” offering cashback services “if their income falls.”
Yakov and Partners also opined that “the digital ruble has no obvious advantages in terms of ease of everyday
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