Russia Will Use The Digital Ruble For Its Payments With China
✍️ 28 September, 2022 - 5:22 👤 Editor: Jakub Motyka
- Russia has created a CBDC, the Digital Ruble, which is in a testing phase.
- It is expected that, by the beginning of next year, it serves to carry out international transactions.
- For the time being, the president of the Russian Central Bank has indicated that good results are expected with its long-term implementation.
The launch of the Digital Ruble, Russia's digital currency, is planned for the beginning of next year and it will be used for its payments with China. In addition to being used in general to make international payments, Russian ambassadors have discussed its true use. According to each one, this currency seeks to fight against the global financial hegemony based on the dollar.
As several countries have done, Russia has been developing its own digital money, in order to reduce the impact of the sanctions imposed against its country. With this in mind, Russia has looked for alternative ways to carry out international transactions. It is through this means that it has been able to access the international market again in a more effective way.
What Can Russia Do With The Digital Ruble?
The Russian Central Bank has conducted different tests to verify that all transactions are done properly. That said, they expect their CBDC to be used for international payments, and other transactions. Russia is currently limited by sanctions imposed by various international organizations due to its actions in Ukraine, limiting the access of its population to the international market.
On the other hand, Anatoly Aksakov, head of the Russian financial committee has commented that “the issue of digital assets has intensified in society. All this has been a response to the sanctions imposed by Western countries, creating conflicts to carry out transactions, including international transactions”. Finally, he added that it is vitally important to turn to digital alternatives, as they are key to maintaining the financial flow.
When Will It Be Possible To Carry Out International Transactions With This Currency?
Currently, the Digital Ruble continues in a test phase, and is expected to start with clients and real operations by April 2023. Elvira Nabiúlina, President of the Central Bank of Russia, has stated that "banks are interested in this experiment."
˝For the time being, next year we will begin to carry out certain types of operations, to later begin their gradual implementation”. Finally, the Central Bank of Russia has established that, as of 2024, exchange transactions from the Digital Ruble to foreign currencies will begin. It will also be from that year that the creation of wallets for non-resident clients will be implemented.
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