Russia plans to issue a Central Bank Digital Currency (CBDC), the digital ruble, in mutual settlements with China. Anatoly Askakov provides a remarkable viewpoint in how this cryptocurrency will improve trade settlements in Russia amidst economic sanctions.
- Russia is currently facing harsh economic sanctions imposed by western countries, thus creating financial problems in international settlements. The head of the finance committee in Russia’s lower parliament, Anatoly Aksakov, discusses the need to use cryptocurrency to solve payment issues.
- Aksakov said that the next development phase of the digital ruble would be used for mutual settlement with China. He added that the digital direction is vital because financial flows can bypass systems controlled by unfriendly countries. Finally, he asserted that the digital currency settlement system would improve transaction efficiency, thus strengthening security and confidentiality.
- Aksakov also described that America’s control over the global financial system would cease as more countries adopt the use of digital currencies. Once Russia fully develops its digital currency system, Russia and China will engage in bilateral digital transactions. On the other side, China has begun using the digital yuan in international settlements.
- With rising economic stagnation due to rising exchange rates, many countries will develop digital currency for their trade settlements. This new technology will make countries, including Russia, less dependent on Western-dominated payment channels such as the SWIFT system. In turn, many Central Bank experts are considering the new technology behind digital coins as they realize countries would deal directly with each other.
See Related: Iran Set To Launch Its CBDC, Crypto Rial
