The State Duma of the Russian Federation fears the risks of introducing a digital ruble – Bits Media

Parliamentary committees believe, that banks and information security of the country will suffer from the implementation of the state digital currency.

Financial Market Committee, The Committee on Budget and Taxes and the Committee on Economic Policy prepared an opinion, Where State Duma representatives agree with the launch of a state digital currency, but they assume, that its implementation could be a threat to the banking and financial system and cybersecurity of the Russian Federation. The conclusion was prepared in response to the document “Main Directions of Monetary Policy” before 2024 of the year, issued by the Bank of Russia.

In conclusion, developed by parliamentarians, It is said, that the state digital currency will increase competition between Russian banks. This could cause a wave of declining profitability in the banking segment and increased government influence on the financial sector of the economy. At the same time, the State Duma generally recognized, that the Central Bank’s digital currency is able to accelerate, secure and reduce the cost of transactions.

Earlier this month, the Center for Macroeconomic Analysis and Short-Term Forecasting reported on the risks of the digital ruble. According to his conclusion, the introduction of a state digital currency may trigger an outflow of up to 9 trillions of rubles from commercial banks by the end 2024 of the year.

Yesterday, Chairman of the Bank of Russia Elvira Nabiullina said, that the state digital currency will be implemented in Russia only if it is freely convertible into cash and non-cash form of the Russian ruble. Earlier this month, Nabiullina reported, that the launch of a prototype of the Central Bank digital currency is scheduled for 2022 year.