Russia plans to use the digital ruble in its settlements with China

Russia plans to use the digital ruble in its settlements with China
Image Credits: CoinGeek

Yesterday, a senior Russian lawmaker disclosed that Russia plans to use its planned digital ruble in mutual settlements with China early next year.

This is a major update to Russia’s CBDC plans, which were originally scheduled for 2024, ahead of its March elections that year. 

It is believed that the digital ruble will be released earlier for timeliness, as Russia seeks to reduce the global financial hegemony of the US in the wake of the Russia-Ukraine war, and its resulting sanctions. 

“With that in mind, Russia is on the hunt for alternative means of carrying out transactions,” said Anatoly Aksakov, head of the financial committee in Russia’s lower house of parliament, in an interview with Russia’s parliamentary newspaper.

By using it in its settlements with China, which has already tested its digital yuan, Russia is trying to spur a global wave. Aksakov explained: “If we launch this, then other countries will begin to actively use it going forward, and America’s control over the global financial system will effectively end.”

The lawmaker also believes that digital currencies could be a way to effectively circumvent financial restrictions by unfriendly nations. He continued: “The topic of digital financial assets, the digital rouble and cryptocurrencies are currently intensifying in society, as Western countries are imposing sanctions and creating problems for bank transfers, including in international settlements.” 

This modern perspective marks the ushering of a new era, as Russia backtracks on its former hardline stance against crypto dealings in an attempt to forge new ways to re-enter the global financial market.

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