By Nathan Ferguson
Russia is still at the pilot stage of the development of its central bank digital currency (CBDC). A recent report stated that Russia can utilize its national digital currency for cross-border trade. Reuters’ report stated that – in the impending year – Russia intends to operate the digital form of the rouble (its native currency) for mutual trading with China.
Russia Advances in Its CBDC Project for Foreign Payments with China
Last month, the United States Treasury Department added almost 22 persons and 2 Russian entities to its sanctions list. The conflict between Russia and Ukraine caused Western World to impose sanctions on Russia, and then it’s looking forward to some alternative economic routes as well as trade exchanges.
Anatoly Aksakov, the head of a funding committee situated in the Russian parliament of the lower house, has lately accepted that its political clashes have restricted its access to the global trade market. In such a situation, it is looking for some alternative channels for normal payments as well as for trade-based dealings. That is why the most suitable solution seems to be the use of the country’s national digital currency (the rouble).
Nowadays, the concepts of cryptocurrency, digital assets, as well as the rouble are proliferating in the country. The major obstacles caused by the Western Sanctions take into account the international dealings and payments made through the banks. Russia has become one of those countries, which are at the finishing developmental stage of the central bank digital currency projects thereof.
After Having Sanctions from the United States, Russia Turns toward Its Digital Rouble
A recently issued update of monetary policy reported by the Bank of Russia claims that in 2024 the authorities will start linking all the credit organizations and banking institutions to a digital rouble venue. The report expects that the mutual trading-based settlements will be carried out through the digital rouble. While on the other hand, cryptocurrency will be utilized for international trade and payments.
A couple of years back, in 2020, Russia implemented a crypto prohibition law that banned the use of cryptocurrency for payments. Although it didn’t censor other crypto activities like mining and trading. As Western authorities increased sanctions on Russia, it decided to shift to the digital rouble. This was a step taken by Russia to compete with America in the international trade industry.