Several megatrends are shaping the future of money worldwide. These trends include the strengthening regulatory role of the state and central banks, growing fragmentation of the financial space, and even personalization and increasing competition. A special role belongs to technological drivers – the democratization of artificial intelligence, tokenization, blockchain, and, of course, digitalization. These forces are fundamentally transforming business models, products, services, and financial market infrastructure. What will the money of the future look like? Will investment and savings strategies change, and what challenges will Russians face in their monetary transactions? These and other questions were discussed by participants of the Money of the Future panel discussion, held as part of the 10th International Forum of the Financial University under the Government of the Russian Federation.
Cash or digital
One of the key crossroads for the financial market remains the growing gap between “cashless” funds and physical cash. This divide is set to widen further in the future – today, 65% of Russians prefer cashless transactions, a figure that has grown by 11% over the past five years, according to a survey by the Russian Center for Public Opinion Research (VTsIOM), presented during the meeting.
“The progress of cashless payments is evident and ongoing. At the same time, cash has not disappeared; a significant portion of the contemporary population does not want to give it up,” notes Valery Fyodorov, General Director of the VTsIOM Analytical Center.
This trend is being driven by the rapid development of new methods, systems, and applications for cashless transfers and payments. It is further reinforced by the evolution of the decentralized finance (DeFi) ecosystem, including the gradual normalization of cryptocurrencies – which, by definition, operate entirely in digital form.
“Cryptocurrency has become a part of everyday life and now holds a distinct place in our routines,” Valery Fyodorov notes.
“The economy may divide into ‘white’ and ‘gray’ zones. The white zone will include fully transparent mechanisms, including those based on central bank digital currencies (CBDCs), while the gray zone may involve private coins or the barter-like exchange of tokenized assets,” adds Ruslan Yusufov, futurologist and managing partner at MINDSMITH.
Machines replacing humans
In the future, the nature of monetary circulation is likely to transform: it is entirely possible that money will be managed not by people, but by machines.
“Money will shift from being a medium of exchange between individuals to becoming a protocol for allocating resources among autonomous agents,” Ruslan Yusufov explains.
According to Yusufov, this shift will give rise to a new economic model in which humans are no longer the initiators of transactions, and high-frequency micropayments without KYC procedures become the norm.
“Historically, the evolution of money – from barter to shells, coins, and later payment cards – has always been driven by human convenience. The next stage, however, is likely to prioritize convenience not for people, but for automated systems themselves, including bots,” Yusufov notes.
At high speed
What awaits us ahead is an ever-accelerating pace of change, including in the realm of money.
“We live in extraordinary times; the evolution of money is unfolding at an increasingly rapid rate,” notes Artem Genkin, Professor, Doctor of Economics, and President of the Autonomous Non-Profit Organization Center for the Protection of Bank Clients and Investors.
He points out that bank cards appeared only in the 1970s, yet today’s younger generation has already witnessed a cascade of financial innovations, from cryptocurrencies, NFTs, and stablecoins to facial-recognition payments as the latest symbol of progress.
The transformation of monetary circulation will be not only swift, but also diverse. Even now, different countries and regions are developing distinctive approaches to cash usage shaped by their specific circumstances. For instance, in parallel, during 2023–2024, South Korea adopted legislation allowing retailers to refuse cash payments, while Switzerland, on the contrary, was discussing a law asserting that consumers have an inviolable right to pay in cash, the expert recalls.
“All of this needs to be properly comprehended,” Artem Genkin explains.
The speed of technological progress is exceeding people’s capacity to fully master it, agrees Irina Gildebrandt, Development Director at SBS Consulting. As a result, society must begin preparing individuals for the changes ahead.
“It is essential that financial literacy programs evolve in line with the transformations taking place,” Irina Gildebrandt emphasizes.
Above barriers
Digital financial assets are expected to play an increasingly important role in the future, particularly in cross-border payments. Although this area remains technically complex, extensive efforts are already underway, Russian Deputy Minister of Finance Ivan Chebeskov says.
Digital financial assets could also serve as an alternative mechanism for attracting foreign investment into the country. At present, investors are wary of secondary sanctions when using universal currencies, and the Russian Ministry of Finance is actively examining this challenge.
A crucial factor in this context will be the compatibility of Russian systems with global open blockchains.
“I believe we will eventually move toward interoperability between our systems, because without it their effective use in international settlements and investment processes will be extremely difficult,” Ivan Chebeskov notes.
Long-term investments
The culture surrounding savings and long-term investment is also likely to undergo significant change. Today, 50% of Russians have savings, while 15% replenish them regularly, says Dmitry Markov, a lecturer in the Department of Sociology at the Faculty of Social Sciences and Mass Communications of the Financial University. Traditionally, savings are set aside “for a rainy day,” yet representatives of the digital generation and younger millennials choose a different approach. For them, investment objectives take precedence, such as purchasing real estate or securities, launching a business, acquiring precious metals, and even investing in cryptocurrency (which accounts for 5% among the digital generation).
“We must overcome entrenched stereotypes that bank deposits are inherently safer, that the financial market is merely a casino for the wealthy, and that investing is overly complicated. Younger generations, who are already showing strong interest in financial markets and investment instruments, can play a pivotal role in this shift,” Dmitry Markov explains.
Future exchange rate
In the future, money – particularly digital money – will become more sensitive to exchange-rate fluctuations. Even today, exchange rates are influenced by factors that are not always obvious. For instance, in 2021, Elon Musk managed to “pump” the value of Bitcoin, the world’s leading cryptocurrency, by approximately 15% in opposite directions within a month and a half, using just two tweets. US President Donald Trump has also cautiously experimented with this approach, suggesting at various points that he might consider repaying US government debt using cryptocurrency.
The motivations behind investment decisions could become increasingly unpredictable.
According to various studies, between 40% and 60% of crypto investors read Elon Musk’s tweets daily, and his statements have a direct impact on where and how they invest.
“For a considerable number of investors, the authority they trust is the popular rapper Snoop Dogg rather than a professional financial analyst,” Artem Genkin observes.
Quantum future
The money of the future will not be limited to cryptocurrencies or stablecoins. Digital quantum currencies may represent the next stage of financial evolution.
“Quantum technologies have entered the mainstream; they are the next technological option shaping the future,” says Svetlana Pertseva, Associate Professor at the Department of International Finance at Moscow State Institute of International Relations.
In particular, quantum technologies could be applied to central bank digital currencies. Major banks, in collaboration with fintech companies, are already developing quantum computing applications for this sector. As the expert notes, China has been building a quantum-based infrastructure for transmitting financial data since 2023, including testing quantum key distribution for interbank transfers. Russian fintech companies are likewise developing their own platforms for quantum computing and quantum currencies.
At the same time, the widespread adoption of quantum computing could pose new risks to financial security, as many existing encryption methods may prove ineffective against quantum-enabled attackers.
“Quantum computing is advancing relentlessly, and this could ultimately result in hundreds of millions of crypto wallets being compromised,” Artem Genkin warns.