The Bank of Russia has revealed that its digital Ruble platform is being designed to interact with other central bank digital currencies (CBDCs). Various mechanisms for facilitating communication between the digital ruble and other state-issued digital currencies are currently under development.
Exploring options for CBDC collaboration
Russia’s central bank officials shared with Russian lawmakers that while specific models for CBDC interaction are still being determined, several alternatives are being considered. These include establishing bilateral integration with each CBDC platform or creating an international digital platform to enable simultaneous interaction between multiple digital currencies.
Despite the development of the digital ruble, the Central Bank of the Russian Federation (CBR) remains opposed to the free circulation of decentralized cryptocurrencies in the country and has no plans to launch a national crypto exchange. However, the bank is open to legalizing international crypto settlements under experimental legal regimes, with a designated organization established to facilitate cryptocurrency transactions between participants.
The CBR has no plans to issue a stablecoin pegged to the national fiat currency but is not against using this type of digital financial asset for cross-border payments or trading through Russian exchanges. This comes as Russia, facing Western sanctions over the war in Ukraine, works to create alternative payment gateways with partner nations, including Turkey. CBR Governor Elvira Nabiullina recently stated that the central bank would permit the experimental use of cryptocurrencies in foreign economic activities.
