Russians prefer cash over non-cash payments
(MENAFN) A former head of Russia’s central bank believes that cash is unlikely to disappear from the country’s economy, citing ongoing demand for cash despite the rise of digital payment methods.
During a recent interview, Sergey Dubinin shared his view that even with technological progress in digital currency systems, a segment of the population will continue to favor cash to avoid taxes and maintain traditional financial habits.
“I don’t think that in Russia, as in any other market economy country, all participants in transactions will prefer non-cash payments,” Dubinin said. “There will always remain some percentage, possibly within 5-10%, who will prefer cash payments, including due to the ingrained habit of avoiding taxation.”
He pointed out that while digital transactions will dominate large-scale operations, some individuals will still gravitate toward cash for smaller, more discreet exchanges. According to Dubinin, digital currencies will likely become comparable to electronic money in function, making them more practical for everyday use.
Dubinin also emphasized cash’s value to the banking sector. He noted that current account balances, including those on credit cards, make up about 12-15% of household deposits. These funds are essentially cost-free for banks and can be allocated toward loans or investments.
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