Settlements with China – Russia plans next move for digital ruble – financial Bitcoin news

Russia intends to use its digital ruble, which will be introduced early next year, for payments with its main ally China. Moscow authorities hope that other countries will be willing to accept Russia’s digital currency in trade, which would allow the country to circumvent sanctions imposed over the Ukraine war.

Russian Federation Expects Digital Ruble for Payments in Trade with China

In 2023, the Central Bank of Russia is preparing to start settlements with the digital ruble, a new incarnation of Russia’s fiat currency. According to the statement of a prominent member of the lower house of the Russian parliament, the sanctioned country wants to use it in payments with China, which has become Russia’s main trading partner.

Limited access to the global financial system due to financial restrictions imposed in response to the military intervention in Ukraine forces Russia to seek alternative means of foreign trade operations. Along with cryptocurrencies, the digital ruble is one of the options Moscow is considering in its attempts to circumvent sanctions.

“The topic of digital financial assets, digital ruble and cryptocurrencies is currently intensifying in society, as Western countries impose sanctions and create problems in bank transfers, including international settlements,” Anatoly Aksakov, head of the Financial Market Committee of the State Duma, told Parlamentskaya Gazeta newspaper recently. .

A senior lawmaker explained that the digital direction is key because financial flows can bypass systems controlled by unfriendly states. He added that the next step for the central bank digital currency (CBDC) issued by the Bank of Russia will be to introduce it in mutual settlements with China. Aksakov, quoted by Reuters, stressed:

If we make it work, then other countries will actively use it in the future, and America’s control over the global financial system will effectively end.

With the loss of markets in the West, including for energy exports, the importance of cooperation with China for Russia has increased significantly. Trade between the two countries has expanded, and Russian companies have started issuing debt in Chinese yuan. Beijing is currently conducting local trials of its digital version, e-CNY, and plans to use it in cross-border settlements.

Russia is set to adopt comprehensive regulations for the crypto market in the coming months, including a new draft law on Digital Currency that will expand the legal framework established last year by the Law on Digital Financial Assets. Russian regulators are already developing a mechanism for international crypto payments, and draft regulations have already been agreed by the central bank and the finance ministry.

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CBDC, Central Bank, China, china, conflict, cross-border payments, crypto payments, Digital Currency, digital ruble, Digital Yuan, foreign trade, international settlements, occupation, Payments, restrictions, Russia, Russian, Sanctions, Settlements, trade, Ukraine, War

Do you think China will accept the digital ruble in settlements with Russia? Share your expectations in the comment section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy journalist from Eastern Europe who likes to quote Hitchens: “Being a writer is more about who I am than what I do.” Along with crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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