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Russian Official Envisions Digital Ruble Overtaking Traditional Banks

Sep 6, 2023 at 04:39 pm

In a recent statement, Anatoly Aksakov, the head of the State Duma Banking Committee, discussed the evolving landscape of finance and digital currencies in Russia. Aksakov expressed his belief that in the near future, obtaining a loan in the form of a digital ruble could become a reality, with lending decisions made by automated systems.

Furthermore, Aksakov shared his vision of the digital ruble's potential to revolutionize the financial sector, potentially rendering traditional banks obsolete. He emphasized that the ongoing development of blockchain technology would play a significant role in this transformation.

"While there are currently no concrete plans to eliminate banks in our country, I believe that with the continued advancement of blockchain technology, the role of traditional banks will diminish," Aksakov stated during a meeting at the AiF.Media club.

The integration of blockchain technology has gained broader acceptance within various institutions, driven by the increasing mainstream adoption of cryptocurrencies. Additionally, many central banks, including Russia's, have embarked on exploring the concept of central bank digital currencies (CBDCs) as a response to the rise of digital assets.

However, Aksakov acknowledged concerns among central banks that the introduction of CBDCs could potentially disrupt the traditional banking sector. The European Money and Finance Forum highlighted potential risks associated with a one-tier CBDC system that directly interacts with depositors, such as significant transfers from commercial banks, which could raise financial stability concerns.

While currently, the central bank of Russia does not offer the option of obtaining loans in digital rubles, Aksakov anticipated a change in this landscape. He believed that such a transition would bring about increased efficiency and speed in financial transactions, potentially rendering traditional banks obsolete.

Aksakov concluded by suggesting that in a world driven by the digital ruble and advanced technology, decisions could be made autonomously by robotic systems, further reducing the need for human intervention in financial processes. He speculated that as the digital ruble evolves and becomes highly technologically advanced, the role of traditional banks might be significantly diminished.

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