Digital Ruble Implementation Faces Resistance from Russian Banks Due to Costs
Russian banks are raising concerns about the high costs associated with adopting the central bank digital currency (CBDC), with connection expenses ranging from $1.248 million to $2 million (120 million to 200 million rubles) proving prohibitive for smaller institutions.
Nearly all bank systems, including compliance and automated banking, will require integration with the digital ruble platform. Although Russia began piloting the digital currency in 2022 and plans full implementation by mid-2025, only five of the 13 Specialized Credit Institutions for Small and Medium-Sized Enterprises (SSICI) are currently participating. The Bank of Russia has mandated that SSICI banks offer clients digital ruble services by July 1, 2025, while universal banks will follow in 2026.
Critics argue that medium-sized banks face significant challenges, viewing integration costs as investments with no guaranteed return. Despite these concerns, the central bank remains committed to the timeline and will impose fines on banks that do not comply.
Clever Robot News Desk 27th October 2024
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