A top Russian politician, Anatoly Aksakov, has made a statement suggesting that Moscow and Beijing could potentially use their central bank digital currencies (CBDCs) for payments as early as 2024. Aksakov, who serves as the head of the State Duma Committee on the Financial Markets, believes that the implementation of “digital national currencies” would greatly benefit the trade turnover between Russian and Chinese companies.
The role of Aksakov and the Central Bank
Aksakov is known as a key figure in the development of Russia’s crypto and CBDC legislation. He often acts as a mediator between pro-business government ministries and the Central Bank. While the Central Bank has been more cautious in its approach to cross-border CBDC trade, stating that its pilot program is still in its early stages, Aksakov is more optimistic. He believes that the digital ruble (RUB) and the digital yuan (CNY) may be compatible and can be used together.
Both Moscow and Beijing have been striving to reduce their dependence on the US dollar in their trade sectors for a number of years. They see the implementation of CBDCs as a way to enhance the international appeal of their respective currencies, the ruble and the yuan. In fact, China has already been using the yuan as a payment tool for most of its oil purchases from Russia since 2023.
Exploring CBDC cooperation with the UAE and Saudi Arabia
The Central Bank of Russia has been actively exploring CBDC cooperation with other countries. The bank’s governor, Elvira Nabiullina, accompanied President Vladimir Putin on a state visit to the United Arab Emirates (UAE) and Saudi Arabia. During the visit, the Central Bank announced its collaboration with the UAE regulator in developing a “digital ruble-powered fast payments and settlements platform” for Russian and Emirati citizens and businesses. This solution is expected to be ready within a year.
Analysts have speculated that Nabiullina’s discussions with Emirati and Saudi counterparts involved exploring the possibilities of conducting dollar-free trading. Both the UAE and Saudi Arabia have been invited to join the BRICS trading bloc, where the idea of launching a single digital currency has been repeatedly discussed.
The Central Bank’s First Deputy Governor, Olga Skorobogatova, also expressed her belief in the implementation of a “new cross-border system” that utilizes the digital ruble. However, the Central Bank has not provided a specific date for the rollout of its CBDC, stating that it will not be ready for “mass” use before 2025, contrary to assertions from the Ministry of Finance.
