Bank of Russia governor talks about cryptoruble implementation mechanism

Elvira Nabiullina, head of the Central Bank of Russia, said that the introduction of the digital ruble will be gradual.

The regulator will not rush the introduction of the instrument in the market and will prepare all its participants for the new rules of the game. At the same time, Nabiullina promised that there will be no increase in lending rates after the introduction of the cryptocurrency.

Previously, Sberbank analysts predicted that within two to Bitcoin Capital three years after the launch of the token, lending rates in the banking sector will begin to rise. This will happen because capital outflows from deposits to digital currency will intensify. This trend will reduce banks‘ liquidity and force them to raise lending rates.

At a press conference last Friday, the Central Bank governor said that testing of the cryptocurrency would begin next year. The launch of the token, backed by Russian currency, will be part of an ambitious programme to digitalise our country’s economy.

The authorities will give the population and businesses enough time to adapt to the new conditions and be able to use the tool freely.

Nabiullina also noted that the emergence of the cryptocurrency will not lead to a drop in deposit and credit rates, as they are only affected by inflation and the overall economic situation.