Russia to launch CBDC soon, with focus on reciprocal settlements with China: report

Russia is on track to launch its own central bank digital currency early next year and use the new currency in reciprocal settlements with China, which has already tested its own digital yuan, a senior Russian lawmaker said in an interview.

The move aims to reduce US hegemony over the global financial system and the media Reports He said.

Russian CBDC takes over US hegemony

“The topic of digital financial assets, digital rubles and cryptocurrencies is currently intensifying in society, as Western countries impose sanctions and create problems for bank transfers, including in international settlements,” said Anatoly Aksakov, Chairman of the Finance Committee of the House of Representatives. Russia. Parliament, in an interview with a Russian parliamentary newspaper.

With this goal in mind, he added, Russia is looking for alternatives.

“If we launch this, other countries will begin to actively use it in the future, and US control of the global financial system will effectively end,” said the Russian MP.

The digital ruble has been in the works for the past few years. It was primarily aimed at modernizing the country’s financial system and speeding up payments. However, due to the sanctions, their implementation is being accelerated, and Russian banks are reported to be testing them.

Cryptographic legislation on the anvil

The prominent Russian lawmaker also hinted that a new cryptocurrency regulation could be issued later this year. With the Russian Central Bank adopting a tough no-frills approach and fighting for a complete ban on cryptocurrencies, Russia’s crypto-legislation has been in limbo for the past year.

Typically, Russia has taken a completely anti-digital approach, and the CBDC project was planned in part as a response to “the threat of cryptocurrencies such as gaining the influence of bitcoin.”

In the changing circumstances, the central bank is believed to have softened its stance on the cryptocurrency regulation bill. It’s now reconsidering A version that seeks to allow digital assets to be traded on the Moscow Exchange, the country’s largest exchange.

posture moderation

At the beginning of this month the Ministry of Finance and the Central Bank agreed To use cryptocurrencies in cross-border payments to facilitate the country’s trade with other countries.

In June, Russian President Vladimir Putin signed a bill banning the use of cryptocurrencies as a means of domestic payments. But he expressed his interest in cryptocurrency mining, saying that the country could use surplus electricity and a favorable climate to develop the industry.

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