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Russian official says international payments via CBDC will become the norm within 5 years
Central bank digital currencies (CBDCs) are expected to become widespread and used as the norm for international payments within the next five years, according to Anatoly Aksakov, chairman of the Financial Markets Committee of the Russian State Duma.
Aksakov made these remarks during an interview at the St. Petersburg International Economic Forum (SPIEF). He noted that currently few countries have made significant progress in implementing national digital currencies.
According to the Russian MP, this technological delay means that countries are not yet ready to use digital currencies for international transactions. However, he expressed confidence that within five years this will become standard practice.
National payments by the second half of 2025
Aksakov revealed that Russia could start using the digital ruble for international transactions as early as the second half of 2025. However, he also stressed the need to test the digital ruble domestically first.
He added that wider implementation within the country, including use by legal entities, is needed before expanding its use internationally. He also recommended testing budget financing with smart contracts as soon as possible.
Russia has been to the at the forefront of CBDC development, with the Russian Central Bank actively working on the digital ruble. The concept of the digital ruble emerged as part of a broader effort to modernize the country’s financial system and reduce dependence on traditional banking infrastructure.
In October 2020, the Russian Central Bank published a consultation document outlining the potential benefits and risks of introducing the digital ruble. Since then, Russia has tested various aspects of CBDC in pilot programs.
Historically, Russia has pursued greater financial independence, especially in response to the crisis Western sanctions. The introduction of the digital ruble aligns with these efforts, aiming to facilitate safer and more efficient financial transactions, bypassing traditional financial systems that may be subject to international pressure.
This strategic move also aims to strengthen Russia’s economic sovereignty and reduce the impact of foreign sanctions on its financial system.
International testing partners
Aksakov also revealed that initial tests for international transactions in CBDCs could involve China or Belarus.
He said China has made significant progress with the digital yuan and that both Russia and China have experience in the technology, making it possible to start settling transactions via digital currencies.
He added that the two nations are “technologically close”, which would simplify the testing process. Meanwhile, Belarus could be a potential partner due to its friendly relations with Russia, Aksakov said.