Russia is planning to use its central bank digital currency (CBDC) in testing, the digital ruble, to carry out mutual settlements with China, Reuters reported on Monday, citing a senior Russian lawmaker.

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Fast facts

  • Anatoly Aksakov, head of the financial committee in Russia’s lower house of parliament, told a parliamentary publication that the topic of digital assets, the digital ruble and cryptocurrencies has become heated in the society, as “Western countries are imposing sanctions and creating problems for bank transfers, including in international settlements,” according to Reuters.
  • Aksakov said the next step of development for the digital ruble would be to use it for mutual settlements with China.
  • Russia’s plan for its CBDC comes as the Western nations imposed sanctions on Russia over its actions in Ukraine earlier this year.
  • As a result, Russia has been seeking alternative ways to carry out cross-border transactions, Aksakov added.
  • The Bank of Russia said in February that it started the pilot stage for its digital ruble, and in August the central bank announced plans to connect all Russian banks to the digital ruble in 2024.

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