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Digital ruble will not affect monetary policy mechanisms — Bank of Russia

The regulator noted that the issuance of the digital ruble will not lead to an increase in the amount of money in the economy

MOSCOW, September 27. /TASS/. The emergence of a digital form of the ruble will not affect the mechanisms for implementing monetary policy - digital currency will not lead to an increase in the amount of money in the economy, according to draft of the main directions of the unified state monetary policy for 2025 and the period 2026 and 2027 of the Bank of Russia.

"After the introduction of the digital ruble, the Bank of Russia will continue to target inflation. The emergence of a digital form of the national currency will not affect the mechanisms for implementing monetary policy. The Bank of Russia will continue to manage money market rates by conducting operations for providing liquidity to banks and absorbing it," the statement said.

The regulator also noted that the issuance of the digital ruble will not lead to an increase in the amount of money in the economy - only the structure of the money supply will change, but not its volume. According to the Bank of Russia, the issuance of the digital ruble will only affect economic agents’ demand for cash and funds in bank accounts and will not exert inflationary pressure.

The document also emphasized that the introduction of the digital ruble and the flow of funds from customers’ bank accounts to digital ruble accounts on the platform do not pose any risks to financial stability. On the contrary, the creation of additional payment infrastructure for the digital ruble will help increase the sustainability, reliability, and uninterrupted operation of the payment system and monetary settlements in general.

The Bank of Russia noted that the introduction of the digital ruble will not affect the basic principles of the functioning of the banking system nor the principles of the implementation of monetary policy. "First and foremost, the two-tier banking system will be preserved, credit institutions will retain their main functions - lending to the economy and accumulating the population’s savings," the regulator concluded.

The Bank of Russia reported on September 12 that major Russian banks will have to give their clients an opportunity to conduct transactions with digital rubles, including the opening of digital ruble accounts and depositing cash thereto, making funds transfers, as well as receiving digital rubles via relevant infrastructure.

Since August 15, 2023, the Bank of Russia has been conducting a pilot project with real digital rubles. The first stage of testing was held with the participation of about 600 individuals from among employees of 12 banks. They tested the opening and closing of digital wallets, their replenishment, transfers between individuals, and automatic payments. Starting September 1, 2024, the pilot has been expanded. The total number of participants increased several-fold as the new stage started.