Specifically, the current development of the digital rouble includes various mechanisms designed to facilitate communication with other state-issued digital currencies. Russian lawmakers were informed by officials from the Central Bank of Russia that specific models for CBDC interaction are still being determined and several alternatives are being considered.
Potential solutions include establishing bilateral integration with each CBDC platform or developing an international digital platform that could support simultaneous interaction between multiple digital currencies. While the development of the digital rouble is in full swing, Russia still opposes the free circulation of decentralized cryptocurrencies in the country and has revealed no plans to launch a Russian crypto exchange.
However, international crypto settlements under experimental legal regimes could be legalised as long as a designated organization were present to facilitate cryptocurrency transactions between participants. While Russia has no plans to issue a stablecoin pegged to the national fiat currency, it is open to using this type of digital financial asset for cross-border payments or trading through Russian exchanges.
In April 2023, Russia’s parliament published a draft law that takes into consideration using digital assets for cross-border payments in a bid to overcome sanctions.
The draft law comes in a troubling context for Russia, as the country has no way of using euros or dollars for payments and is forced to settle its transactions in foreign currencies, even though the contracts are in euros and dollars. To alleviate the resulting foreign exchange risk, the country is considering swapping assets or tokenizing precious metals and other assets and using these for settlement.
Official representatives from the Bank of Russia cited by ledgerinsights.com highlighted the new law’s role in facilitating the use of digital financial assets for international payments while supporting the creation of a special authorised organisation. In essence, miners would be able to sell through this authorised organisation to foreign economic entities.
In September 2022, the Bank of Russia talked about the role of cryptocurrencies in cross-border payments and admitted that such an implementation might become inevitable given the geopolitical conditions. Back then, Deputy finance minister Alexei Moiseev took part in an interview with the Russia-24 TV channel and emphasised that the Bank of Russia and the finance ministry expect to legitimise cross-border payments in crypto in the future.
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