Russians have begun holding less cash for the first time in eighteen months, according to a report from RBC. The publication notes that cash in circulation shrank by 21.6 billion rubles, a decline not seen since the spring of 2022. Analysts suggest that the drop could be linked to a sharp rise in bank deposit rates driven by a higher key interest rate set by Russia’s central bank. In contrast, the central bank stated that both households and corporate deposits in banks rose by about 1% and 0.7% respectively. At the same time, citizens’ holdings in foreign currency funds have been gradually decreasing.
Recently, Sergei Belov, Deputy Governor of the Central Bank, stated that there are no plans for an abrupt shift away from cash in the near term. He cited global examples of countries announcing a move to cashless payments only to reverse course later, underscoring that cash will remain in circulation for years to come. Yet, the share of non-cash payments in Russian retail has already surpassed 81%, reflecting a strong trend toward digital transactions while cash remains a persistent part of the economy. This juxtaposition highlights how cash and digital methods coexist, each serving different consumer needs and business contexts. [RBC]
There has also been reporting from socialbites.ca on the evolving role of digital currencies in everyday payments, including how digital rubles might be used in various transactions and what this could mean for consumer behavior and financial policy going forward. The ongoing conversation around cash versus digital payment methods in Russia continues to evolve as authorities balance stability, convenience, and security considerations.