The Central Bank of Russia has published detailed plans for two separate methods of creating digital roubles and other state-backed currencies. They expect to begin testing C2B operations during the first quarter of 2019.
In foreign trade, the Central Bank of Russia plans to implement a digital currency payment platform.
The Bank of Russia intends to develop a way to process CBDC payments across international borders as they continue to work on the implementation of their central bank digital currency. The press revealed this plan after the bank was prevented from accessing CBDC due to financial restrictions and sanctions.
In an outline created by Kommersant Business Daily, the Russian monetary policy regulator plans to develop two payment models in the first quarter of 2023. Both approaches address the proposals outlined in a presentation they saw.
Concrete agreements between two states create the need for both electronic currencies and cross-border financial transfers. This leads to the creation of complementary digital currency platforms through bilateral agreements.
The Bank of Russia suggests creating a single platform that handles payments between multiple digital currencies. These services would operate under single protocols and standards.
The Bank of Russia plans to use a digital rouble for C2B testing.
Due to sanctions imposed by the West for its invasion of Ukraine, Russia’s access to global financial markets and funds has been severely limited. In addition, the Russian central bank has encouraged the digital rouble to be released faster. However, they have taken a more neutral stance on cryptocurrencies as long as they are used exclusively in international trade or under special legal regimes.
Ongoing trials of the CBDC project have added more than a dozen additional financial institutions to the mix. At the time of writing, more than 12 different institutions have participated in these trials. These include banks and other financial institutions. Each institution has tested CBDC transactions with each other.
Another objective for this period is to draft the necessary legislation for domestic digital fiat transactions. A draft law was submitted in December. The monetary authority also hopes to test digital currency payments between users on a small scale.