The Central Bank of Russia recently shared the business model of its central bank digital currency (CBDC). By the end of 2025, all digital ruble transactions will be free, and the first banks and merchants are expected to go live on July 1. The central bank plans to earn fees by operating the system.
Meanwhile, at a hearing in the Russian State Duma last week, the Russian Banking Association (ABR) said that banks are unhappy about this. They are worried about the possible outflow of bank deposits and the high cost of deployment. It is reported that the Central Bank of Russia does not intend to limit the holding of CBDC. According to Info24, ABR Chairman Anatoly Kozlachkov said that the cost of setting up each bank is about 100 million rubles ($1 million), while some banks have only $3 million in capital.