Russians open 220,000 digital rouble accounts in first month after launch, central bank says

Russians Open 220,000 Digital Rouble Accounts in First Month Since Launch

By Elena Fabrichnaya

Digital Rouble Adoption Surpasses Expectations

MOSCOW, Oct 6 (Reuters) - Russians have opened more than 220,000 digital rouble accounts since the currency's September 1 launch, far exceeding expectations, the central bank said on Tuesday, despite some public scepticism and resistance from some bankers.

BRICS Digital Currency Initiatives

Like fellow BRICS members China and India, Russia has been developing its own digital currency, with officials floating plans to integrate national digital currencies into a new BRICS payment system.

Potential for a Unified BRICS Payment System

The success of any such system will depend on consumers and businesses adopting digital currencies across BRICS countries.

Central Bank and Corporate Participation

"We expected around 60,000 accounts. Yet by the end of September, in just the first month, we had over 220,000 accounts. In other words, we are open to the world," central bank Deputy Governor Zulfiya Kakhrumanova said.

Corporate Interest in Digital Rouble

Russia's second-largest bank VTB said last month that more than 1,500 corporate clients were ready to open digital rouble accounts.

Distinction from Other Digital Currencies

Unlike digital money issued by commercial banks, which is already widely used, or cryptocurrencies, a national digital currency is a direct claim on a country's central bank.

Advantages of the Digital Rouble

Supporters say the digital rouble could make tax evasion harder, ensure social benefits are spent as intended and improve transparency in state procurement.

Impact of Sanctions and Geopolitical Factors

Russia accelerated the development of the digital rouble after Western sanctions imposed over the Ukraine conflict cut it off from parts of the Western financial system and complicated payments with major trading partners China and India.

Alternative Payment Networks

A digital payments system linking Russia and its trading partners, and shielded from Western regulators, could eventually replace the network of intermediaries created to facilitate trade after sanctions were imposed.

Challenges and Public Perception

Banking Sector Resistance

The project has faced some resistance from commercial banks that have invested heavily in digital services. Sberbank CEO German Gref has criticised the initiative, arguing banks already provide digital payment services domestically.

Public Understanding and Acceptance

Last month, President Vladimir Putin asked financial authorities to better explain the difference between electronic payments and the digital rouble, saying most Russians did not understand it.

Salary Payments and Public Opinion

The Finance Ministry and central bank said they had begun paying some workers' salaries in digital roubles on a voluntary basis, though opinion polls indicate most Russians remain opposed to being paid in the currency.

(Writing by Gleb Bryanski. Editing by Mark Potter)