These transactions might involve China or Belarus, according to state representatives. They noted that significant global progress in using national digital currencies is limited. Therefore, many countries are not yet ready to implement digital currencies in international settlements.
However, he expects this to become common practice within five years. They mentioned that China has advanced with its digital yuan, making it a potential partner for digital currency settlements with Russia. Belarus is also considered a possible partner due to its friendly relations with Russia.
China is engaged in multiple central bank digital currency (CBDC) projects, including the digital yuan and mBridge, a cross-border CBDC initiative. Discussions are also ongoing about a BRICS Bridge project, involving both China and Russia. Before Russia can begin cross-border tests, it needs to establish the digital ruble domestically.
The first phase of digital ruble pilots began in August 2023, with VTB as the first Russian bank to conduct transactions. Currently, 30 companies in 11 cities accept the digital ruble through VTB. For instance, Lukoil gas stations accept the CBDC for purchases, users can pay for phone or internet services at Rostelecom, and it is usable on the Moscow Metro.
Recently, the central bank signed a cooperation agreement with the Mayor of Moscow to expand the CBDC's use in metro travel, parking, and other transport services. The city also plans to implement smart contracts for automating the insurance of its urban transport fleet.
VTB is among 13 banks participating in the first phase of trials. The second phase will include Russia’s largest bank, Sber, the largest digital bank, Tinkoff, and 15 other banks. This phase will involve more participants and retail outlets, introduce dynamic QR codes, and facilitate transfers between companies and other legal entities.
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