Russian Banks Struggle to Embrace the Digital Ruble

Russian banks are reportedly facing challenges regarding the adoption of the digital ruble, as it is believed that the launch of a Central Bank Digital Currency (CBDC) could cost them $684 million annually. According to a report by Comnews, even the Central Bank’s commercial bank partners are seeking ways to avoid dealing with the digital ruble and maintain the current banking system.

One notable development comes from VTB Bank, which recently announced a solution that allows CBDC owners to convert their digital tokens to cash at ATMs. Initially, this solution will be available at 14,000 VTB ATMs across Russia. If other banks follow this model, it is possible that citizens will soon be able to use this function at ATMs nationwide.

The media outlet defined this effort by VTB Bank as a “commercial bank vaccine” against the digital ruble. There is a belief that commercial banks are concerned that the introduction of a CBDC will encroach upon their business. In public, however, VTB bank and other institutions have expressed support for the Central Bank’s CBDC plans and have called for the rapid expansion of the digital ruble project.

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