Russia is reportedly preparing to pivot to using digital currencies to settle international transactions with allies amid economic sanctions.
sputnik international report The Bank of Russia has announced that it is ready to start initial tests with China and the member states of the Eurasian Economic Union (EAEU). The EAEU consists of Belarus, Kazakhstan, Armenia, Kyrgyzstan, and Russia.
Russian Finance Minister Anton Siluanov has revealed that Russia is eyeing new digital currency-backed payment methods with oil-rich Gulf countries. Siluanov’s comments did not mention any specific countries, but analysts expect the United Arab Emirates (UAE) to be part of the initial tests given its previous work on digital currencies. .
Siluanov revealed Russia’s ambitions at a meeting of finance ministers and central bank governors from BRICS countries in Sao Paulo, Brazil. Russia currently holds the chairmanship of the BRICS bloc, and its top priority is to wean itself from the US dollar as the de facto trade currency.
Russia, in cooperation with other BRICS countries, is exploring several options, including the possibility of central bank digital currencies (CBDCs), local fiat currencies, stablecoins, and other forms of digital currency.
Siluanov noted that Russian authorities will be keen to build a BRICS bridge system designed to serve as a multilateral digital payments platform. Details of the BRICS bridge have not been disclosed, but there is speculation that it will include interlinking between CBDC and financial messaging systems.
Siluanov said: “We propose the creation of a BRICS bridge system, which will be based on the BRICS institution and available to both countries and will ensure an appropriate level of equality and contribute to the development of trade relations.” said.
The proposed system takes inspiration from the Bank for International Settlements (BIS)-backed mBridge platform, with which China and the UAE have already recorded early successes.
Russia has previously seen several major financial institutions launch pilots to encourage the use of digital assets in cross-border transactions, despite the government’s strong opposition to the use of digital assets in domestic transactions. We have started on this.
new world order
Mr. Siluanov has expressed the view that the global financial order is undergoing a seismic shift, with emerging economies showing the possibility of outperforming the G7 countries in recent years. Recognizing the changing dynamics, the finance minister argued that Western countries were trying to stifle growth in emerging countries.
“This transformation will not be easy,” Siluanov said. “We see what kind of restrictions and sanctions are trying to rein in China and Russia. These are the results of a paradigm shift.”
Russia claims that its BRICS chairmanship will improve the economic interests of BRICS member states.
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