Ex-Central Bank Chief Addresses Cash in Russia
(MENAFN) Despite the advancement of digital currencies, Russia is unlikely to completely abandon physical money, according to the former governor of the nation’s central bank.
Sergey Dubinin, in a recent conversation with a news agency, emphasized that there will always be a portion of the population that finds value in using traditional currency.
Dubinin stated that even as digital alternatives gain traction, certain individuals in the financial system will continue to favor cash dealings, particularly to minimize tax obligations.
He remarked, “I don’t think that in Russia, as in any other market economy country, all participants in transactions will prefer non-cash payments.”
According to him, a consistent minority—possibly around 5–10 percent—will still lean toward cash exchanges due to what he described as a “habit of avoiding taxation.”
While non-cash systems will dominate major transactions, Dubinin expects digital money to be categorized similarly to electronic payments, which could enhance their practicality and accessibility.
He believes this will streamline digital payment adoption without fully displacing physical currency.
Additionally, Dubinin pointed out that tangible cash plays an essential role in the financial ecosystem by serving as a no-cost funding source for banks.
He explained that account balances, including those linked to credit cards, represent between 12–15 percent of the total savings held by households.
These readily accessible funds are crucial for banks, enabling them to issue loans and invest without incurring additional costs.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
