Russia's digital ruble is expected to reduce business costs just could too cut profits for commercial banks, according to Elvira Nabiullina, chairwoman of the Bank of Russia.

At a Thursday meeting of "Opora Russia," a nongovernmental system of small- and medium-sized businesses, Nabiullina said that a digital ruble could undercut commercial depository financial institution profits from commissions and transaction fees.

Furthermore, she stated that a central bank digital currency is a natural evolution in making financial services more streamlined:

"This is a natural motion in the fiscal system development: Financial intermediaries should become less burdensome for the economy and earn coin with new products and services instead of profiting from their monopoly and lack of alternatives. [...] Nosotros believe that pocket-sized- and medium-sized businesses should definitely do good from this."

The official as well highlighted a number of benefits of a digital ruble, including more-secure and faster payments. "We are now because several models in which the digital ruble can exist, in which the interaction of clients, the fundamental bank and commercial banks are organized in unlike ways, only these advantages remain in all models. These are fast, reliable and secure payments," she said.

In October, Nabiullina claimed that a digital ruble will not have the same level of anonymity as greenbacks, noting that the Bank of Russia expects to strengthen user privacy. The chairwoman's remarks came shortly after Russia's cardinal bank officially released its CBDC plans on Oct. 13. According to the bank, a digital ruble could before long be used equally an boosted form of money alongside cash.