- The report by HSE Experts reveals that residents in Russia might completely abandon the use of cash by 2035.
- As a replacement of fiat, the Russian market is likely to be benefited by cryptocurrency.
As the crypto world is working towards integrating the use of digital currency into the real world, the future of fiat money is often debated. While some believe that cryptocurrency can exist parallelly with the traditional monetary system, others argue that crypto coins are meant to replace fiat money.
The evolution of the financial system and the trends expected in the future is a significant field of study in economics. In one such research that was conducted by experts at the Higher School of Economics (HSE), it was revealed that residents in Russia might completely abandon the use of cash by 2035. This new market is likely to be benefited by cryptocurrency.
Cryptocurrency: Future of Cashless Transaction
Members of the crypto community have often spoken about the use of crypto coins in everyday life, like paying for coffee or booking a cab. This looks like the future, especially for Russian residents, if the results of the research are to be believed.
The report is based on the opinion of the Institute for Development Centre of the Higher School of Economics. It states that Russia ranks number one in Europe in the prevalence of the use of mobile phones. Further, its financial technology product penetration rate is as high as 40% to 50%. Research company Deloitte has predicted that the fintech market in Russia can reach up to 65 billion Rubbles only in 2020.
With these exceedingly favourable factors for digital currency in the nation, many also believe that Russia will achieve the shift well before 2035. Ivan Abramov, a member of the Federation Council Committee on Economic Policy, has stated that he expects the change to happen in the next seven years based on the current pace at which banking technologies have been developed.
Agreeing with this view is Financial Market Committee Chairman Anatoly Aksakov reportedly said-
“Already more than half of the transfers are made non-cash. The trend is that the share of cash in circulation is rapidly declining – so it is likely that by 2035 there will be less than 10 percent. Or even earlier,”
Recently another study by the international consulting company, The Boston Consulting Group, also revealed that Russia had increased its number of cashless payments by 30 times over the last eight years. The report termed the increase as “phenomenal.” These indications have made Russia an upcoming potential market for the crypto world.
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