Governor of the Bank of Russia: Cash will not disappear from circulation, we are developing a digital ruble

(Patria) - Cash will not disappear from circulation and demand for it is not disappearing, said the Governor of the Bank of Russia Elvira Nabiullina, Tass agency reported.

"Our basic position is that people should have the option to choose how to make payments. We are introducing choices. We are still developing cash, and we are even creating a new series of banknotes with a fresh design. So cash is not disappearing, there has been and there is demand for cash," she said.

The head of the State Duma Committee on the Financial Market, Anatoly Aksakov, said in early September that the digital ruble could be used in international payments from 2025.

The Bank of Russia previously stated that the digital ruble will not replace bank accounts and deposits. Interest will not be charged on wallet balances; in addition, a limit is planned to be introduced on the amount of funds stored in them. This is necessary to prevent the outflow of liquidity from banks and reduce lending.

Paying for goods and services with a digital ruble will be similar to paying with a QR code. It will be possible to pay with a digital ruble offline, without internet access. The client will transfer a portion of the digital rubles to a special offline wallet. Its use will be similar to paying with cash, where credit cards are not accepted.

The launch of the offline mode of the digital ruble is planned only in the second phase of the project, around 2024. The launch of the exchange of the digital ruble for foreign currency and open wallets for non-residents is also planned.

Head of the Bank of Russia Elvira Nabiullina stated at a meeting between Russian President Vladimir Putin and the government on July 19, 2023, that the mass introduction of the digital ruble could occur in early 2025.