In Russia, as in most of the world, they will never give up cash in circulation, – former deputy chairman of the Central Bank Sergei Dubinin told socialbites.ca about the prediction of a Goznak representative that the discussion on the need for cash payments could mature by 2030.
“The short answer is that I think it will never happen (the rejection of cash. – socialbites.ca). The reason is very simple. The technical side of the matter can be completely ready by 2030. But technical innovations live in a certain economic environment. When they are in demand, they benefit everyone. But we still have a large area of economic activity where people prefer not to record their income, primarily withholding tax. And depending on the general state of the economy, the share of those who try not to pay taxes increases or decreases. This was especially evident in the 1990s. In 1998, the budget could not collect any taxes. “There was a gap due to the fact that both businessmen and ordinary citizens did not pay,” Dubinin said.
According to the economist, despite the fact that there is no decline in production in Russia at the moment and taxes are being collected intensively, the entire population of the country is not ready for widespread electronic systems and payments.
“There is something called behavioral economics. If people’s behavior in the economy is organized, they will be ready to pay taxes and will not try to evade taxes, which means there will be less demand for cash. But to completely abandon this, everyone needs to know how to use electronic technology. I am not sure that outside of cities with a population of over a million, everyone uses cards, let alone smartphones. Remember the reaction of our people to the QR code application. It was eventually abandoned. I understand that the same reaction, although no less harsh, will be a cash outage. In addition, many people behind such widespread use of electronic databases think that their every step is taken into account, not a benefit, but a threat. It is not clear who it is, not only in terms of law enforcement, but in general. So discussions may begin by 2030, but I do not think that our society will change dramatically by then. The same can be said for most of the world,” Dubinin concluded.
On September 10, during the International PLUS Forum “Payment Business and Money Circulation 2024”, Goznak Research Institute Director Georgy Kornilov said that the discussion on the fundamental need for cash in circulation could begin in 2030.
“I think that at least by 2030, a new discourse will emerge in the public sphere that cash circulation should be in principle. This does not mean that there will be no cash in 2030, it means that the discussion on how cash circulation is necessary in 2030 will begin in full force,” Kornilov said.
According to him, currently in Russia the ratio of non-cash payments to cash payments is 90 percent and around 10 percent.
Former Deputy Governor of the Central Bank accepted On September 13, it kept the interest rate at 18 percent.
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Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.