Russia's Largest Bank Doubts Digital Ruble's Economic Impact

Russia is on the brink of launching its digital ruble, yet there is growing skepticism within the country's financial sector about the necessity and benefits of a central bank digital currency (CBDC). This skepticism is notably coming from some of the most influential figures in Russia's financial system.

German Gref, the CEO of Russia’s largest state-controlled lender Sberbank, has expressed doubts about the digital ruble's potential to transform the economy. Speaking on the sidelines of the Bank of Russia’s annual Financial Congress, Gref stated that he does not see any scenario where the digital ruble would lead to a large-scale transformation of the economy. He argued that Russia's financial system is already fully digital, with cashless payments providing all the benefits that the digital ruble could offer. Gref emphasized that Sberbank, with over 100 million clients, is technologically advanced enough to handle any new financial products without the need for a digital ruble.

Despite Gref's reservations, the Bank of Russia remains optimistic about the digital ruble. The central bank views the digital ruble as a third form of national currency, alongside cash and cashless money, which could bring significant benefits over time. These benefits include faster, more transparent, and more secure financial transactions. However, these advantages seem to primarily serve the state rather than ordinary citizens, as the digital ruble offers new tools for state-level financial management and expanding financial inclusion.

Russia already has a robust digital payment infrastructure, with its own versions of Visa and Mastercard, as well as advanced mobile banking apps. From a user's perspective, it is unclear why anyone would want to switch to a new payment method when the existing systems are already efficient and widely used.

The Bank of Russia plans to begin mass adoption of the digital ruble on September 1, 2026, and expects it to become a regular part of financial life within five to seven years. To make the digital ruble more appealing, especially for everyday users, the central bank is waiving all fees on transfers between individuals. Businesses will still have to pay commissions, but these are lower than what current payment systems or card services charge. For example, sending money from a private user to a business comes with a maximum fee of 1,500 rubles or 0.3% of the transfer amount, while utility payments are capped at 10 rubles or 0.2%.

The central bank also offers incentives to banks and other participants helping to operate the digital ruble platform. These partners will receive small commissions for facilitating various types of transactions, although the amounts are tightly regulated. Payments are made in digital rubles and handled directly through the platform’s centralized accounting system.

The Bank of Russia insists that the digital ruble is about the future, emphasizing that it is a step toward a more modern and flexible financial system. Officials believe the platform could make government payments more efficient, help track public funds more transparently, and even pave the way for new types of smart contracts and automation in finance.

However, Gref remains unconvinced, at least for now. There is still time for the picture to shift as the pilot phase for the digital ruble, which began in August 2023, continues to test new functionalities. Some suggest that the real value of the digital ruble may only become apparent as international payment systems become more fragmented, and Russia seeks new tools to bypass sanctions and simplify trade with select foreign partners. In this scenario, the digital ruble might not change everyday life for most Russians but could still become a useful instrument for the state. Regardless, the Bank of Russia appears determined to stay the course, even as some of the country’s most powerful bankers openly question its purpose.