Digital Ruble Introduction Will Not Lead to Inflation, Says Bank of Russia
The Bank of Russia has confirmed that the launch of the digital ruble, its central bank digital currency (CBDC), will not impact inflation control or the money supply.
In its draft policy for 2025-2027, the bank stated it will continue to use existing tools to manage monetary policy. The digital ruble, designed for retail use, allows direct payments, differing from CBDCs focused on interbank transactions. Despite some analysts’ concerns about potential economic effects, the bank believes it will not cause inflation but rather increase demand for cash and bank funds.
The existing two-tier banking system will remain, with credit institutions continuing to support the digital ruble and provide custodial services. The Bank of Russia anticipates widespread adoption of the digital ruble by 2025.
Clever Robot News Desk 3rd October 2024
