Several nations around the world have been re-considering the currency or mode of payment for international settlements. On one hand, a host of them intends to reduce the influence of the U.S. dollar for trading. On the other, there are other nations opening the doors for crypto to be accepted for settlements.
Russia is one such country that is moving forward in the latter direction. A recent report revealed that the Central Bank is weighing in on the possibility of using digital currencies like crypto for international settlements. In fact, a draft law is already being prepared.
Also Read: Russia to Use Chinese Yuan for Trade Settlements With Asia, Africa, Latin America
Russia to use crypto for external payments
At an event with representatives of the New People party, the Chairman of the Central Bank, Elvira Nabiullina recently told that the regulator can use digital assets for settlements with foreign entities. Such operations will be reportedly feasible within the framework of the experiment. As noted by Nabiullina, the central bank opposes the use of crypto within the state. However, such funds can be used for external payments. This likely means that special institutions will be created in Russia that will engage in mining and crypto transfer to foreign structures. Such organizations will also be reportedly engaged in operations with other digital finance.Â
The Central Bank is parallelly consulting with the government about which institutions can be allowed to do the same. The report pointed out that these institutions will presumably be entrusted to a state company first. Moving forward, private enterprises will also be added to the picture.
Russia is also in favor of internationalizing the Chinese yuan. In a recent speech, Putin alleged that around two-thirds of the trade between Russia and China happens with the yuan and ruble. The president went on to state that his country is in favor of using the yuan in settlements between Russia and the countries of Asia, Africa, and Latin America.
Alongside, Russia has also been making strides on the CBDC front. Russian banks are expected to start testing the digital ruble CBDC on customers soon. As Watcher Guru reported, the process will begin after the regulatory framework is adopted by the end of April-May.
Also Read: Russian Banks to Start Testing Digital Ruble CBDC on Customers