- Over half of Russians open to using digital ruble for financial storage.
- Only 17% trust the central bank digital currency with amounts over 20,000 rubles ($212).
- Primary concerns revolve around inadequate knowledge of the technology and potential cyber risks.
Recent research reveals that while a significant portion of Russia’s population sees potential in the central bank’s digital ruble, trust tends to dwindle when substantial amounts are involved. A study facilitated by Saint Petersburg Exchange and the Russian Trading System surveyed over 2,000 individuals, varying from 18 to 65 years old. The findings, released in the newspaper Izvestia on August 24, highlight that 58.3% are open to the concept of storing funds in this new digital currency.
Nevertheless, trust appeared limited in terms of quantity. A mere 23.8% expressed willingness to transfer amounts ranging from 5,000 rubles ($53) to 20,000 rubles ($212) into the digital form. A smaller 9% visualized storing between 20,000 rubles ($212) and 50,000 rubles ($529), and only 2% considered storing up to 100,000 rubles ($1,058) in the central bank digital currency. The thought of converting all personal funds to this digital currency was appealing to a tiny 2.4% of the surveyed group.
Several barriers prevent wider adoption of the digital ruble. A significant 22% indicated a lack of thorough understanding of the digital currency and how it operates, while 21% had apprehensions about possible digital theft and potential system breakdowns.
In recent developments, Russia took steps toward exploring the functionality of the digital ruble. Since August 15, pilot tests are being conducted, engaging 13 local banks and a select group of their clientele. The present focus of these tests is to fine-tune the fundamental functionalities, such as setting up and funding digital ruble wallets, enabling direct transactions between individuals, refining automated payment structures, and integrating QR code technology for hassle-free purchasing.
Olga Skorobogatova, the First Deputy Governor of the Bank of Russia, has outlined visions for the digital ruble. Their goal is to mainstream its application across the nation by the latter half of the 2020s.
Russia’s Crypto Push Amid Sanctions
In the wake of escalating international tensions since the 2014 Crimea annexation, Russia has been turning its gaze towards cryptocurrency as a potential lifeline to circumvent U.S. sanctions. Spearheading this shift is the introduction of the Digital Ruble, a blockchain-based innovation by Russia’s central bank aimed at streamlining domestic transactions and slashing costs.
The Digital Ruble, though hailed by Russian authorities as a potential game-changer in dodging Western sanctions, is primarily designed for local use. Its efficacy as a tool for international trade remains in doubt, due to hurdles like the absence of a robust global framework for Central Bank Digital Currencies (CBDCs) and international accords guiding their use.
Apart from state-backed digital currency endeavors, Russia’s connection to the burgeoning ransomware domain is drawing global attention. With an estimated $400 million of global ransomware proceeds landing in the pockets of potentially Russian-linked entities, the country’s central role in this shadowy digital world is undeniable. Dark web marketplaces like Hydra further underscore Russia’s evolving relationship with cryptocurrency, serving as conduits for illicit cross-border money movements.
As sanctions loom and geopolitical challenges persist, Russia’s foray into the digital currency realm signals a strategic pivot. However, the viability of these digital assets as long-term solutions to geopolitical economic pressures is yet to be cemented.
