Digital currency plans across nations seem to be drawing out concerns from a host of commercial banks. As a result, several questions have emerged with regard to a CBDC’s impact on private banking sectors. Recently, Russia’s Association of Banks became the latest network to join the discussion. According to the Association, local member banks weighed the consequences of introducing the digital ruble into the Russian economy.
In the Association’s latest survey, an overwhelming response pointed out risks associated with the currency proposed by Russia’s central bank. Members that participated in this study believed that CBDC related risks are similar to risk factors associated with cryptocurrencies, as well as cashless transactions that are facilitated via bank cards.
At the same time, even cybersecurity risks have been linked with all models of the Russian CBDC. Further, the survey indicated the digital ruble’s high risk of negative consequences on the activities of institutions such as small and regional banks in Russia.
The Association detailed other risks associated with the implementation of digital ruble and claimed that “offline payments significantly reduce” the possibility of regulators detecting and preventing “fraudulent payments.” They argued that such risk would make the digital ruble model “especially dangerous.”