Russia is unlikely to ever give up cash, according to the former head of the country’s central bank, who believes there will always be people who benefit from using it.

In an interview with RTVI on Wednesday, Sergey Dubinin said that even as digital currencies develop, some market participants will always prefer cash transactions in order to avoid taxation.

“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 noted that large transactions will still be carried out using non-cash methods, adding that digital currencies are likely to be equated with electronic money, which will make them more convenient to use.

Dubinin also highlighted the role of cash in providing banks with a source of funds. He explained that balances on current accounts, including credit cards, constitute 12-15% of total household deposits. These funds are available to banks at no cost, allowing them to be used for lending or investment purposes.

Central Bank Governor Elvira Nabiullina said in April that non-cash payments in Russia had already reached 86% and predicted that the share of such payments could grow to 90% over the next three to five years.

The Central Bank of Russia reported that cash circulation had increased by 5.1% last year, totaling ₽130.1 trillion (around $1.45 trillion). Deposits and withdrawals at banks’ cash offices and ATMs amounted to ₽63.6 trillion (about $710 billion) and ₽66.5 trillion (around $740 billion), respectively.

A poll conducted by the country’s Public Opinion Research Center (VCIOM) last year found that more than half of Russians, especially young people and those who live in major urban areas, believe cash will no longer be used for daily transactions in 20 years. Almost 80% of respondents said plastic cards are simply easier and more convenient than cash. Only about 18% of Russians said they trust cards less than cash, citing reasons such as fear of losing them and a general distrust of banking services.

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African National Congress (ANC) President Cyril Ramaphosa has pleaded with the South African Communist Party (SACP) not to contest the 2026 elections alone, saying the two were like twins and that separation would be admitting to losing state power.

Ramaphosa warned that this would divide and lower the ANC even further. He referenced the damage that the breakaway parties have caused to the party.

“When you look at the various parties that have splintered from the ANC, you begin to understand that through that splintering process, from the late 50s until 2000,” he said.

Ramaphosa spoke at the SACP’s 30th anniversary celebration in honour of the late Joe Slovo, held at Avalon Cemetery in Soweto on Monday.

Ramaphosa’s remarks come after the SACP announced in December that they would contest the 2026 local elections independently without the ANC.

The SACP is dissatisfied with the Democratic Alliance’s (DA) participation in the ANC-led Government of National Unity (GNU).

In his speech, Ramaphosa stressed that the ANC has been weakened by splinter parties like the MK Party, EFF, and COPE. This was seen in the May 29, 2024, national and provincial elections.

For the first time since democracy, the ANC has lost the elections and dipped below 50%.

“We need to ask ourselves whether we are truly serious about winning state power on our own as the alliance because if we are then we walk together.

”If we walk separately, we must then accept that yes, state power is going to be diffused and it’s no longer going to reside in the hands of the mass democratic movement or alliance. That is the choice we have to make,” he said.

Ramaphosa emphasised the need for the ANC and SACP to strengthen their relationship to ensure that power was still within them.

“The SACP has been a strength behind the ANC similarly the ANC has been a pillar of strength to the SACP and the two need each other… The two are like twins separating them is to weaken our NDR.

”Getting one to walk separately is to weaken the national democratic movement,” he maintained.

Ramaphosa called for unity as they prepare for the upcoming elections as well as January 8 celebrations. The president will deliver the statement in Khayelitsha, Cape Town on Saturday.

First published by IOL

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