The head of Russia's central bank said on Thursday that it planned to introduce a digital ruble that could be used for international payments by the end of next year and hoped to expand the number of countries willing to accept credit cards issued in Russia.
At a time when Western sanctions have cut Russia off from much of the global financial system, Moscow is actively seeking alternative ways to make important payments at home and abroad.
Russia's central bank plans to implement digital ruble trading next year, and the digital currency could be used for some international settlements, according to central bank governor ElviraNabiullina.
"The digital rouble is one of the priorities," Ms Nabiullina told the State Duma. "We're going to have a prototype very soon... Now we are testing with the banks and we will gradually launch pilot deals next year."
Like many other countries around the world, Russia has been developing digital currencies over the past few years to modernize its financial system, speed up payments and guard against potential threats posed by cryptocurrencies such as Bitcoin.
Some central banking experts also say the new technology means countries will be able to trade more directly with each other, reducing reliance on Western-dominated payment channels such as SWIFT.
Expand MIR card's "circle of friends"
Nabiullina also said that Russia plans to expand the number of countries that accept Russian MIR cards. MIR isa rival to Visa and mastercard, which have now joined other Western companies in imposing sanctions and suspending operations in Russia.
Russian banks have been isolated from the global financial system by western sanctions imposed since the outbreak of the conflict with Ukraine. Since then, the only options for Russians to pay abroad have included MIR cards and China UnionPay.
The new round of SANCTIONS announced by the United States on Thursday even hit Russia's virtual currency mining industry for the first time.
Binance, the world's largest cryptocurrency exchange, said it was freezing accounts worth more than 10,000 euros ($10,900) held by Russian citizens and companies based there. Those affected will still be able to withdraw their money, but they will now be barred from making new deposits or transactions, a move Binance said was in line with EU sanctions.
"Despite being isolated from most financial markets, the Russian economy should be competitive and there is no need for self-isolation in all sectors," Nabiulina said in her speech to the Russian Duma. We still need to work with those countries that we want to work with."
Post time: May-29-2022