At the close of last month, the Bank of Russia unveiled the business model for its central bank digital currency (CBDC). All digital ruble transactions will be free until the end of 2025, with the initial group of banks and merchants anticipated to start operations on July 1. The central bank intends to generate revenue by charging fees for managing the system. Meanwhile, during a hearing in Russia’s State Duma last week, the Association of Russian Banks (ABR) expressed that banks are dissatisfied.
They are worried about the possible withdrawal of bank deposits and the expenses of implementation. Russia does not intend to impose limits on CBDC holdings. According to ABR chair Anatoly Kozlachkov, the setup cost is approximately 100 million rubles ($1 million) per bank, as reported by Info24. He pointed out that some banks have only $3 million in capital. Senior legislator Anatoly Aksakov, who leads the Financial Markets Committee of Russia’s State Duma, is frustrated by the resistance from banks. Considering Mr. Aksakov’s previous comments, it’s surprising that banks aren’t opposing more strongly.Regarding the central bank’s plans for fees, all transactions with the digital ruble will be free for consumers, including transactions between consumers (C2C) and from businesses to consumers (B2C). However, consumer to business (C2B) transactions will incur fees starting in 2026.
The model operates with all revenues going to the platform operator, which is the central bank, and then the central bank distributing some fees to payment providers. The central bank retains a portion, which is one third for business to business (B2B) transactions and about one sixth for consumer to business (C2B) payments.
For C2B payments, the business recipient must pay 0.3% in fees with a maximum limit of Ruble 1,500 ($14.34). For the same transaction, the central bank will pay the consumer’s payment provider 0.1% with a maximum of Ruble 500. The recipient’s payment provider will receive 0.15% with a maximum of Ruble 750. Payments related to housing and community services have a lower central bank charge of 0.2% instead of 0.3%, with a maximum charge of Ruble 10. The payment providers receive lower fees for these housing payments.
Business to business (B2B) payments have a flat central bank rate of Ruble 15 (14¢). The payer’s payment provider receives Ruble 10 for the B2B transaction.
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