Reportedly, Russia is currently busy developing their own central bank digital currency (CBDC) to develop. This project should already be in the pilot phase be and the goal is according to Reuters to conduct international trade with China, among others, with this digital currency.
Russia and cryptocurrencies
A CBDC is actually nothing more than the digital variant of a national currency issued by a central bank. In the case of Russia, that would be the digital ruble. The plan is to use this digital ruble for trade with China as soon as next year. This process is currently being extensively tested by both countries.
Anatoly Aksakov, head of the finance committee in the Russian House of Commons, recently admitted that the geopolitical crisis has limited Russia’s access to the international trade market. Therefore, alternative methods of payment are actively being worked on and the digital ruble currently seems to be the first choice:
“The subject of digital financial assets, the digital ruble and crypto is currently increasing in society as Western countries impose sanctions and create problems for bank transfers, including international settlements.”
Aksakov actually says it himself; the reason for this early rollout of the digital ruble has everything to do with Western sanctions. These sanctions, as a result of the invasion of neighboring Ukraine of course, are taking a huge blow to the Russian economy. The crypto industry seems to offer a way out for the country.
CBDCs elsewhere in the world
However, Russia is not exactly the first country to develop a CBDC. The forerunner in this field is without a doubt China. There’s been one here for a while digital yuan which is already widely used.
An Australian legislator was recently concerned about the adoption rate of this digital yuan. He wanted Australia to take measures to limit the influence of the digital yuan in the country. According to him, it would significant hazards to state security can form.
