In an interview with CNBC‘s Hadley Gamble, Elvira Nabiullina predicted that as the economy moves online digital currencies will be the future of all financial systems. Including Russia with digital ruble.
“The need for fast, inexpensive payment systems and central banks’ digital currencies can fill this gap. I think this will be the future of our financial system because it is related to the evolution of the digital economy,” Naibullina said.
Explaining that Russia prepared a report on the digital ruble in October, they plan to create a prototype of the digital ruble platform by the end of 2021 and to start pilot applications in 2022, Nabiullina said, “We will proceed step by step because this is a very difficult, technological and legal project.”
Our reserves are big enough to underpin all financial and geopolitical scenarios
Describing the US sanctions as a ‘permanent risk’ for Russia, Nabiullina said, “Therefore, our monetary policy, our fiscal policy, and our entire macroeconomic policy are extremely conservative. Russia‘s reserves are large enough to withstand all financial or geopolitical scenarios, and are probably larger than other countries.”
Nabiullina noted that efforts to reduce the dollar’s share in the economy and trade are part of a broad policy to manage currency risks.
Noting that Russia, China, and the EU have a strong motivation to reduce the dollar’s share, Nabiullina added, “There is a trend where countries choose to have more diverse international reserves. It will happen, but not very quickly.”