Russian Lawmaker Predicts That Digital Ruble Will Displace Banks

Eventually, the digital ruble, alongside the development of blockchain, will displace the need for banks, Russian lawmaker Anatoly Aksakov said in a meeting, a local media outlet reported on Tuesday.

“As for the role of banks, I think that their role will fade in the future with the development of blockchain,” said Aksakov, the head of the State Duma Banking Committee, speaking at a meeting at the AiF.Media club, though no plans have been put in place in the country to get rid of banks.

Blockchain technology, the infrastructure that underpins crypto, has become more widely accepted by institutions thanks to crypto becoming more mainstream. Plus, apex banks of several countries, including Russia, started exploring central bank digital currencies (CBDC) as their answer to digital assets. Russia has been conducting a pilot for its digital ruble with banks.

Central banks, however, have been worried that a CBDC would cause problems for the banking world.

According to The European Money and Finance Forum, a one tier CBDC system that goes directly to depositors with no limits could result in “large transfers from commercial banks," increasing financial stability risks.

Currently, the central bank of Russia has not made it possible to get a loan in digital rubles, but Askakov believes this will change "because it will be faster and, perhaps, more efficient." If that happens, banks will not be needed at all, Askakov added.

“Decisions will be made by a robot - a person is not needed there. Perhaps a bank is not needed as an institution since the digital ruble will be very much technologized,” Askakov concluded.

CoinDesk reached out to the Russian Parliament for comment.