The Central Bank of Russia has detailed two methods to implement the digital ruble and other state-backed coins in international settlements. The monetary authority also plans to start testing consumer-to-business (C2B) operations in the first quarter of the year.
The Central Bank of Russia will offer platforms for digital currency payments in foreign trade
Continue efforts to introduce its central bank digital currency (CBDC) amid sanctions and financial restrictions, the Bank of Russia is preparing to offer solutions for processing cross-border CBDC payments, Russian press has revealed.
The proposals are part of a presentation seen by the business daily Kommersant. The document describes two potential payment models that the Russian monetary policy regulator intends to develop in the first quarter of 2023.
The first relies on bilateral agreements between countries to integrate their digital currency platforms. This approach emphasizes ensuring convertibility between the CBDCs of two partner countries and facilitating transfers in accordance with previously agreed rules.
As an alternative, the Bank of Russia suggests the establishment of a single multilateral platform allowing payments between digital currencies of several nations. These transactions would also be conducted under common standards and protocols.
The Bank of Russia will test C2B transactions with the digital ruble
Russia’s access to world finance and markets has been severely limited by sanctions imposed by the West following its invasion of Ukraine. Along with efforts to speed up the introduction of the digital rouble, the Russian central bank has also softened its stance on crypto payments as long as they are used exclusively in international trade or under special legal regimes.
The presentation quoted by the Russian daily also gives an overview of the other next steps of the CBDC project, including testing with C2B transactions with participating banks. More than a dozen banking institutions and other financial companies have joined the trials so far.
The preparation of the necessary legislation to regulate operations with the digital version of the national fiat is another objective for the said period. A respective bill was already tabled in December. The monetary authority also plans to pilot digital ruble payments between customers on a limited scale.
Do you expect international payments with central bank digital currencies to become a reality soon? Share your thoughts on the subject in the comments section below.
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