The Governor of the Central Bank of Russia, Elvira Nabiullina, discussed the future of physical cash in light of the digital ruble pilot program currently underway in the country. Nabiullina explained that paper money is not going away and that the eventual rollout of the digital ruble is meant to provide additional payment options for consumers.
The Central Bank does not intend to eliminate cash through the digital ruble. Nabiullina reiterated that people should be able to choose how they make payments. She said cash will continue to exist, as there is still significant demand. The bank is even introducing a new series of banknotes.
The digital ruble is not meant to replace bank accounts or deposits. Limits have been set on the amount of digital rubles users can hold to avoid direct competition. Funds in digital ruble wallets also will not earn interest.
The digital ruble is envisioned as a tool for domestic and cross-border payments. QR codes will enable local transfers. Offline payments will also be possible by transferring digital rubles to a separate offline wallet.
Mainstream adoption of the digital ruble is expected around 2025. The goal is to provide more options, not phase out cash.
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