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Russia is reportedly planning to use the digital Ruble (CBDC) in mutual international deals with China. According to reports, the country’s process of unveiling its central bank digital currency development is in its pilot phase and is now aiming above just owning a digital national currency.
According to a Reuters report, Russia is apparently aiming to use the digital ruble for mutual settlements with China by the end of next year. The digital ruble is now being tested for bank settlement and is anticipated to be finished by the beginning of next year.
In the latter stages of last week, Russian regulators approved cryptos like Bitcoin for cross-border settlements, with Deputy Finance Minister Alexei Moiseev stating that the government agency and the central bank had “on the whole” agreed on the said rule that allowed citizens to send cross-border payments using cryptos.
Russia is now on the hunt for alternative means of conducting business internationally as a plethora of international sanctions still looms over its head for its actions in Ukraine.
The United States Treasury Department added 22 individuals and two Russia-based entities to the sanction list in the third week of September.
The head of Russia’s lower house of parliament’s finance committee, Anatoly Aksakov, recently acknowledged that Russia’s access to the world market has been hampered by geopolitical turmoil. The country, as a result of this, has been aggressively seeking out alternative payment systems and trade settlement methods and the national digital currency seems to be the primary choice at the moment. He said,
“The topic of digital financial assets, the digital rouble, and cryptocurrencies are currently intensifying in society, as Western countries are imposing sanctions and creating problems for bank transfers, including in international settlements,” he stated.
Aksakov further stated that, due to the increasingly important relationship with China, the next logical step for the launch of the digital ruble would be to launch it for mutual agreements with China, which has already tested its digital yuan.
“If we launch this, other countries will start actively using it in the future, and US control over the global financial system will effectively end,” Aksakov said.
Russia’s ties with China have deepened after several Western countries sanctioned it for its military operations in Ukraine. The two countries have since strengthened trade, and Russian companies have started issuing debt in yuan.
Russia disclosed earlier this month that it is in talks with several friendly nations about setting up clearing mechanisms for international stablecoin transactions. On September 6, Alexey Moiseyev stated that the creation of bilateral platforms for avoiding the use of dollars and euros is something that Russia is presently working on.
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