Russia advances toward cashless payments, but cash remains vital in daily life
The head of the Ministry of Finance indicated a deliberate, staged move away from cash toward non cash formats. The program aims to complement everyday commerce with secure, electronic methods, improving transaction traceability and tax compliance. In the sense of policy, this transition is designed to streamline payments, reduce cash handling costs, and enable faster settlements across both consumer and business markets.
While cash use is expected to shrink, officials stress that money will not vanish entirely. Cash serves as a practical tool for many people, particularly in smaller towns and for everyday purchases where digital options are less accessible. The reality remains that cash remains part of the financial fabric, ensuring liquidity and resilience during outages or service disruptions and supporting spontaneous purchases that digital methods sometimes can’t accommodate.
In parallel, Moscow’s housing market shows a persistent pattern of cash transactions for property acquisitions. Industry observers note that savers with real money have increased activity in real estate as a way to protect wealth against inflation and to secure a tangible asset. Real estate purchases with cash reflect a demand for liquidity and a belief that bricks and mortar can outpace rapid price swings when financial instruments may feel uncertain.
Georgy Kornilov, Deputy General Director for Marketing and Strategy at Goznak JSC, explained that Russia does not plan to eliminate cash in the near term due to the current technological and infrastructural constraints. He noted that the population has about 17 trillion rubles in cash in circulation, underscoring the scale of physical money in everyday life and the need for a robust cash distribution system that ensures access for all segments of society.
A prior analyst assessed the typical amount of cash carried for daily use, illustrating how cash remains a practical, personal budgeting tool. The estimate varies by region, lifestyle, and spending habits, but it underscores the enduring role of physical currency for many households, especially when digital networks or card facilities are inconsistent.