As part of the country’s drive to sidestep Western sanctions, Russia’s central bank announced it intends to have a digital currency, Digital Ruble, ready by next year.
Elvira Nabiullina, the governor of the Bank of Russia, informed Russia’s lower chamber of parliament that a central bank digital currency capable of international settlements would be available by next year.
Despite the reluctance of a few Russian banks to participate in the CBDC pilot project, the First Deputy Chairman of the Bank of Russia, Olga Skorobogatova, stressed the necessity of the digital currency and stated that necessary testing would be conducted this year without delay.
Russia, like many other countries, has been working on a central bank digital currency to speed up payments and modernise its financial system. Since the imposition of Western sanctions in response to Russia’s invasion of Ukraine on February 24, Russia has prioritised alternate means of participating in the global financial system.
Aside from the digital currency, Nabiullina stated that Russia wants to increase the number of nations that accept the central bank’s MIR banking cards. Not only have most Russian banks been targeted by Western sanctions, but foreign operators such as Visa, Mastercard, and PayPal have ceased their activities in Russia.
Read more: Cryptocurrencies poses risk to Russian Economy: Central Bank of Russia
