Gazprombank Suggests Gradual Introduction of CBDC Due to Fears of Revenue Decline

Due to global financial restrictions and geopolitical unrest, the country’s central bank digital currency (CBDC) program has been accelerated. Gazprombank believes that it is crucial to work towards a gradual introduction of the new currency to give the financial sector adequate time to adjust.

In a public statement, Gazprombank advised caution while considering the interests of traditional banks, highlighting the need for institutions to take steps to limit potential losses. The bank asserts that it is essential to be aware of any risks associated with the switch to a digital ruble and to implement it cautiously, giving the financial sector enough time to adapt.

According to the GPB, adopting a digital version of the national currency will improve the transparency of all financial transactions, benefiting the nation’s banking system and the overall economy.

According to McKinsey, a global management consulting firm with a branch in Russia, traditional banks could potentially lose $3.5 billion or 250 billion rubles over five years as a result of the CBDC adoption.

According to Finance Minister Anton Siluanov, the transparency of the digital ruble will benefit the Russian budget. He also pointed out that the fact that the central bank is its issuer gives the digital ruble unparalleled reliability.

The Central Bank of Russia is also developing a CBDC-based system for cross-border settlements. The country has faced growing economic and commercial sanctions due to the escalating Russo-Ukrainian war and the extensive invasion of Ukraine in late February 2022.

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