Russian legislator, Anatoly Aksakov, in a recent discussion, foresaw a future where the role of banks might diminish, owing to the advancements in blockchain technology, particularly with the advent of their impending digital ruble. A fundamental shift that has yet to be officially planned or implemented in the country, but one that raises interesting considerations.
Blockchain, the cornerstone of the crypto landscape, has been acquiring increasing acceptance among global institutions due to cryptocurrencies entering mainstream market. Add to this, central banks from across the world, including Russia, have begun exploring the potential of central bank digital currencies (CBDC). Adoption of such technology suggests an answer to, or perhaps even a competitor against, digital assets, such as BTC.
Russia has, in fact, already carried out a pilot for its digital ruble in collaboration with banks. Yet, the concern on the flip side is that these CBDCs could bring about discord in the banking sphere. The European Money and Finance Forum posits that a direct, limit-free, tier one CBDC system could lead to “large transfers from commercial banks,” which elevates financial stability risks.
At present, the Central Bank of Russia has not greenlighted loans in digital rubles. However, Aksakov believes such an eventuality to be highly likely, given its propensity for faster and perhaps more efficient transactions. In his view, this could potentially render traditional banking operations obsolete.
A drastic implication of such a shift would be the replacement of human decision-making with automated actions. “Decisions will be made by a robot – a person is not needed there. Perhaps a bank is not needed as an institution since the digital ruble will be very much technologized,” Aksakov suggested.
CoinDesk reached out to the Russian Parliament for further comments. The intersect of technology with financial institutions has always been a fascinating crossroads to observe. Whether the transition to digital currencies could signify a significant transformation in our interfacing with financial institutions, or if it’s merely another blip in the evolutionary timeline of money, only time will tell.
Source: Coindesk
