russians Are Switching En Masse from the Digital Ruble to Cash Because They Fear Their Funds Will Be Confiscated to Finance the War

russians are returning to cash in droves amid mistrust of new financial instruments – particularly the newly introduced digital ruble – and tighter banking controls. As of the end of September 2026, 38% of russia’s population (about 55.4 million) had already chosen paper money as the safest way to preserve their savings. Over the past year, this figure has risen by 6%, marking the largest increase since spring 2022.

The main reasons for moving away from non-cash funds were the risks of account freezes, an increase in the number of grounds for canceling transfers, as well as disruptions to internet and mobile service. Besides, the central bank of the rf’s reduction of its key rate to 14% has lowered the returns on bank deposits, forcing citizens to seek alternatives in the form of regular cash, which provides direct access to money without intermediaries.

At the same time, the government and financial institutions are doing their best to curb this trend. Banks are reducing their networks of ATMs and branches, while the government is imposing stricter restrictions on cash circulation, including a ban on taking more than 1 million rubles out of the country to nations in the Eurasian Economic Union and a number of other neighboring states.

Despite regulators’ efforts to promote digital payment methods, russians are opting for cash out of fear that, against the background of a budget deficit and to finance the war against Ukraine, the kremlin may simply seize their savings.