As countries around the world reassess their currencies for global payments, two distinct trends have become evident. While some nations are aiming to reduce the influence of the US Dollar in trade, others are embracing the potential of digital assets such as cryptocurrencies for settling international transactions.
Russia is taking a decisive stance in favor of the latter approach. According to a recent report, the Central Bank of Russia is actively considering using cryptocurrencies for international settlements, and a draft law has been developed to facilitate such transactions.
Russia explores digital currencies
Elvira Nabiullina, Chairman of the Central Bank of Russia, has stated that while they are opposed to the domestic use of cryptocurrencies, they acknowledge their potential utility in global payments. To this end, they have been working towards determining which institutions will be authorized to handle activities related to cryptocurrency mining and the transfer of digital assets abroad.
Moreover, Russia has been actively promoting the use of the Chinese Yuan in its international trade with countries in Asia, Africa, and Latin America, as President Putin recently revealed that two-thirds of their bilateral trade is conducted in Yuan and Ruble.
Additionally, the Central Bank of Russia is progressing with its CBDC testing, with plans to begin trials with customers soon. Nonetheless, these developments demonstrate Russia’s commitment to taking a leading role in the advancement of digital payments on a global scale.