Wednesday, June 26, 2024 – The initial cross-border payments using the digital Ruble will be launched by Russia by mid-2025, enabling China and Belarus pay in the Central Bank Digital Currency (CBDC), bypassing other channels of payment, according to the chairperson of the Financial Markets Committee of Russia’s State Duma, Anatoly Aksakov.
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China’s acknowledgement of digital Yuan paved the way for Russia to join hands with China for the new initiative to be launched in 2025.
He stated that the CBDC would become a “common practice” for cross-border payments within five years. 2
The Chinese CBDC or digital Yuan, has been used for several international payments, and since China’s experience in working with its CBDC projects, is expected to help Russia.
The pilot program of testing CBDC’s operations partnering with 13 commercial banks in Russia was launched in August 2023, enabling the Russians to use digital rubles when purchasing goods in 30 retail shops. 3
The domestic circulation of CBDC in Russia is proving successful, beginning with the banking sector, including VTB, the country’s second-largest bank, and extending its reach to gas stations and transport services.
It is reported that the central bank inked a cooperation agreement with the Moscow Mayor, foreseeing a thriving future for CBDC’s expansion.
The next phase will be launched by collaborating with the largest bank in Russia, Sber, expecting to increase the circle of retail outlets and group participants.
Plus, offering the QR codes and enabling transactions with companies and legal organizations are also expected to be facilitated.
- ledgerinsights.com: https://www.ledgerinsights.com/russia-to-start-using-cbdc-for-cross-border-payments-in-2025/[↩]
- ledgerinsights.com: https://www.ledgerinsights.com/russia-to-start-using-cbdc-for-cross-border-payments-in-2025/ [↩]
- atlanticcouncil.com: https://www.atlanticcouncil.org/blogs/new-atlanticist/russia-is-ramping-up-its-cbdc-will-putins-robot-ruble-work/ [↩]
