Former central bank director anticipates Russia will never desert cash
(MENAFN) Russia is unlikely to eliminate the use of cash entirely, as some people will always prefer it, especially to avoid taxes, according to former Central Bank head Sergey Dubinin. Speaking to RTVI on Wednesday, Dubinin stated that even with the expansion of digital currency options, a portion of the population—estimated at 5–10%—will continue using cash due to habit and its role in informal economic activity.
Dubinin explained that while large transactions will remain mostly digital, cash will retain a niche role in the economy. He added that digital currencies would likely be treated similarly to electronic money, improving their usability.
Cash also remains vital for the banking sector, Dubinin noted, as funds from current accounts—including credit cards—make up around 12–15% of household deposits. These low-cost funds provide banks with liquidity for lending and investments.
Although Central Bank Governor Elvira Nabiullina recently noted that 86% of payments in Russia are now non-cash—and this could rise to 90% in the next 3–5 years—cash usage remains significant. In 2023, cash in circulation rose by 5.1%, totaling ₽130.1 trillion ($1.45 trillion), with ₽63.6 trillion deposited and ₽66.5 trillion withdrawn from banks and ATMs.
A national survey by VCIOM found that most Russians, particularly younger people in urban areas, believe cash will become obsolete within 20 years. Nearly 80% said they prefer card payments due to convenience, while only 18% said they trust cash more, citing concerns like card loss and skepticism toward banks.
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