Digital Ruble Spells Disaster for Russian Banks
What do you get when you combine the world’s most unpredictable economy with the latest technology advances? You guessed it…the digital ruble!
Experts say the introduction of the digital ruble will cost Russian banks a whopping $700 million per year. Oh, banky-wankies, why must you bear the brunt of things?!
Let’s break it down. What does this mean for the banking industry in Russia? Basically, the digital ruble is going to wipe out a significant portion of their profits. Why? Because it functions on the blockchain and cuts out the middleman – that’s banks, for all the non-banking people out there.
Here are the three most prominent drawbacks of the new currency from the bank’s standpoint:
- It will reduce the traditional banking model’s role in payments and financial transfers.
- It will cause a notable loss of income usually accrued through commissions, processing fees & interest payments.
- It will jeopardize the security of personal, financial, and private transaction data.
Cryptocurrency isn’t just all glitz and glamour.
Unfortunately, it seems, it may spell out disaster for Russian banks.
On one hand, it’s a great step forward for the country in terms of technology and innovation. On the other hand, for many establishments in the banking industry, it looks like a one-way ticket to bankruptcy city.
Maybe banks should come up with their own version of cryptocurrency a la Bankcoin. That would certainly be an interesting development. Until then, let’s just hope that the introduction of the digital ruble doesn’t lead to complete chaos in Russia’s financial and banking sector.
Weeeell that was a bit of a downer, wasn’t it? Yeesh, no wonder people don’t like to talk about money. To lighten the mood, why don’t we all just have a little chuckle about how this guy overslept and missed his own cryptocurrency launch? He probably didn’t end up needing to worry about the digital ruble.
Better luck next time, buddy!
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