Digital ruble said to free Russians from bank fees, or will it?

The monetary authority in Moscow is now working to convince Russians that its upcoming digital ruble will actually make them independent from bank fees and restrictions.

It’s the same as cash and bank money, a representative of Russia’s main financial regulator insisted on national television, although neither citizens nor institutions are likely to take the bait all the way.

Russia’s digital coin to save people some fees, central bank exec says

Authorities will always try to push their projects on the population, and those in Russia are no exception to the rule. The latest example is that there is a not-so-perfect attempt to promote the digital version of the national fiat.

The digital ruble is the same means of payment as banknotes in wallets or balances in bank accounts, according to Alla Bakina, director of the National Payment System Department at the Central Bank of Russia (CBR).

Speaking for the Rossiya TV channel, she emphasized that the advantages of the third incarnation of the Russian ruble, after cash and bank money, don’t end there.

Access to a digital ruble wallet will be significantly broader than access to a bank account, Bakina noted, obviously playing the “financial inclusion” trump card.

She also highlighted the option to access one’s digital ruble holdings through already existing banking apps, without the need to install a new one.

This, Bakina explained, will solve the problem with funds being unavailable due to technical issues, as a digital ruble account will be accessible via multiple platforms.

Last but not least, the central bank digital currency (CBDC) will make Russians more independent of bank fees and rules, the CBR executive pointed out, elaborating:

“For people, all transactions in the digital ruble are absolutely free, regardless of the amount and number of transfers, which means independence from bank fees and restrictions.”

Are these claims actually reasonable?

The digital ruble has been in the making for several years now. Trials started in 2023, with a limited number of participants, and the pilot has been expanding since last year.

The CBDC’s full-scale launch for public use was initially planned for 2025 but postponed by the CBR to allow Russian banks and firms to better prepare.

Following a call for its mass adoption, issued last spring by no other than President Putin himself, the Bank of Russia announced a new schedule for its gradual introduction. The latter will be carried out in stages, with the first one starting September 1, 2026.

While the state-backed coin is likely to bring some benefits, Alla Bakina’s claims are not painting the full picture.

For example, while transfers between private individuals will be free of charge, those to businesses will come with a fee of 0.3% and payments for housing and utility services will be charged at 0.2%.

Although a grace period for transactions between companies was recently extended until December 31, 2026, as reported by Cryptopolitan.

As with other CBDCs, such as the digital euro, the political promise for the digital ruble has been that it won’t replace cash but merely supplement it.

However, some Russian economists are already expecting demand for Russian cash to decline in sectors such as retail and government services.

Last month, the executive power in Moscow approved a list of budget payments that can be made in the nation’s digital currency, including salaries in the public sector and pensions.

Sofia Glavina, associate professor at the Economics Department of the Peoples’ Friendship University of Russia (RUDN), told local media this week the digital ruble may reduce cash usage by up to 10% by 2030.

Many Russians, nearly half of the respondents in a recent poll, fear the main purpose of the digital currency is to serve as a tool to increase government control over their finances.

Meanwhile, a top aide to the CBR’s management admitted Russians are unlikely to rush to the digital ruble as holdings in regular bank deposits will remain more desirable.

Accounts holding digital rubles will not accrue interest by default, reminded Kirill Tremasov, advisor to the Governor of the Central Bank of Russia (CBR), Elvira Nabiullina. Russian banks have been complaining that the digital ruble may hurt their profits.

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