Russia’s Gazprombank Proposes to Slow Down on Rolling Out CBDC

Vignesh Karunanidhi
Russia’s Gazprombank Proposes to Slow Down on Rolling Out CBDC
Source: Central Banking

Stablecoins and central bank digital currencies (CBDC) have attracted the interest of numerous international countries. This is demonstrated by the adoption of CBDCs by various nations and the execution of pilot projects to integrate central bank digital currencies into daily life.

Japan’s intention to introduce experimental CBDC in 2023, and India’s beginning of its retail central bank digital currency pilot program are two recent developments. Along with Brazil’s central bank planning to introduce CBDC in 2024, France and Luxembourg are also using them experimentally.

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Gazprombank, Russia’s state-owned energy corporation subsidiary, proposes to slow down on the CBDC rollout.

Source: Payments Cards & Mobile

Gazprombank is afraid of losing income post-CBDC launch

Gazprombank, a participant in the Russian central bank’s digital currency initiative, asks to slow down the release of the central bank’s digital currency. The entity fears a drop in income when the fiat currency is replaced by the digital ruble.

The bank also laid out a proposal to give the banks some time before they begin implementing the CBDC.

“It is imperative that banks take measures to mitigate potential losses. Hence, it is crucial to recognize the potential risks associated with the transition to a digital ruble and approach its implementation with caution, allowing the financial system sufficient time to adjust.“

The report also released a cautionary statement while proceeding with the release of central bank digital currency.