Digital Ruble to Shift Cash Use, Affecting Key Sectors
The digital ruble may reduce cash demand in retail, government services, and rural regions.
The total money supply will remain unchanged despite the introduction of the digital ruble. However, the balance between cash and non-cash money in circulation may shift. Details were explained by Sofia Glavina, an associate professor at the economics faculty of RUDN (Peoples« Friendship University of Russia).
The digital ruble is a new form of Russian currency issued by the Bank of Russia. It exists only in electronic form (it is important not to confuse it with non-cash rubles on a card) and operates on a special platform. The digital ruble consists of a unique digital code stored in digital wallets.
«Today, the share of cash in Russia is approximately 10% (which is on average lower than in other developed countries). Testing shows that the digital ruble could reduce cash usage by 5–10% in the long term (by 2030), but this will not reduce the total money supply—money simply flows into the digital format,» the expert explained.
The need for cash may decrease in areas where convenience, speed, and transparency of payments are important, such as in retail trade, government services, and interbank transfers. However, Glavina believes that their complete disappearance in the next 10–15 years is extremely unlikely.
Moreover, banknotes will remain in demand in rural areas, as they are most often used by elderly people due to low digital literacy. Cash will also be used as a means of anonymity and reserve in conditions of economic instability.
The economist suggests that cash circulation will persist due to cultural and social practices. This refers to gifts on holidays (birthdays, weddings, etc.). In this case, the tradition of giving paper money has special significance. According to Glavina, a gradual transition from cash to digital will occur, but not their complete disappearance.
Non-cash payments via bank cards will also remain. They will continue to be the main tool for mass payments (salaries, benefits, pensions) and online trade, as well as international transfers through systems like SWIFT.
«In the future, a hybrid model is possible: users will transfer funds from cards to the digital ruble (and back), using the digital ruble for instant, low-cost, and state-guaranteed transactions, while bank cards will be used for more complex financial operations. Thus, cards and the digital ruble will coexist, complementing each other, not competing,» the economist concluded in a conversation with Prime.
The phased introduction of the digital ruble will occur this year. For example, from September 2026, Russians will start receiving salaries in the new form of Russian currency, but this will not affect everyone. Details about all nuances can be found here.
