Anatoly Aksakov, a Russian lawmaker and chair of the Parliament’s financial committee, has predicted that blockchain technology and the adoption of Russia’s Central Bank Digital Currency (CBDC), known as the Digital Ruble, would lead to a gradual decline in the significance of traditional banks.
According to a local news agency, Aksakov made this prediction while speaking at a media forum. He stated that while private banks might still play a role in the digital financial assets and Digital Ruble infrastructure, they would need to redefine their purpose.
“The traditional role that they served will gradually fade away,”
Aksakov reportedly stated.
Aksakov also mentioned that the current daily use restrictions on the Digital Ruble would soon be lifted. He explained that one reason for these restrictions was to separate the existing banking system from funds management and utilize the Russian Central Bank’s new and more efficient information system.
Aksakov believes that as decisions become increasingly automated and technology-driven, the role of traditional banks as institutions could become less significant.
“Decisions will be made by a robot – a person is not needed there. Perhaps a bank is not needed as an institution since the digital ruble will be very much technologized,“
Aksakov explained.
After battling multiple delays, the Bank of Russia finally launched the testing phase of its CBDC program on August 15, 2023. The Bank noted this testing phase is critical for evaluating the Digital Ruble’s functionality in real-world scenarios and making any necessary adjustments before its public release.
The pilot program involves collaboration with thirteen commercial banks across eleven Russian cities.
With this move, Russia joins the likes of India, China, Japan, Turkey, Iran, and fifteen other countries in the pilot phase of their CBDC exploration.
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