Faced with sanctions, Russia is accelerating on its MNBC

Bypass international sanctions – The Russia sparked what she keeps calling “a special operation” in Ukraine almost a year ago. banishment from nations western and under the yoke of sanctions never seen before, it seeks by all means to escape it and to continue its exchanges economic with countries that have not turned their backs on it. And it has been clear for several months that the creation of a central bank digital currency (MNBC) is one of the preferred solutions. After much procrastination from the Duma and the Central Bankthings are becoming clearer in Moscow.

A tense geopolitical context which slows down the implementation of the project

In this project of MNBC russian, difficulties techniques are multiple, but it is obviously from a point of view Politics and diplomatic the shoe pinches. Deputy Chairman of the Association of Banks of Russia, Alexei Voylukov confirms it:

“The main problem is not a technical implementation, but a political one. The introduction of the digital ruble will not change and improve the situation here. Pilot operations can only begin with very close friendly countries that would be technically ready at that time. »

Indeed, even if the rumors of projects with the China Where with African countries are circulating, all of these countries are advancing on a ridge line. Do trade with the Russia can be a good idea in these uncertain times where energy is expensive. But beware of the wrath of the United States, the European Union and their allies! And in this context, everyone weighs the pros and cons with great precautions.

The digital ruble is advancing but it faces obstacles of various kinds

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We know a little more about the two options considered around this MNBC

But in reality, these difficulties policies do not discourage the teams in charge of the project from continuing with their schedule. This is how the January 9 last, the Russian daily Kommersant has released information regarding upcoming deadlines digital ruble. We learn that some banks are planning life-size tests, but also that the Duma plans to vote on a new regulatory framework. However, the big news would be confirmation of the establishment of a cross-border payment system.

And in this context, two options are on the table. The first would be based on agreements bilateral that Moscow would spend with certain countries. Therefore, for each partners, a special system should be put in place. The other possibility would be the creation of a kind of platform unique that would share protocols and standards with all potential partners.

China has always been an economic and political partner of Russia.  And the deterioration of Moscow's relations with a large part of the international community has exacerbated this situation.  If a cross-border crypto payment project is to see the light of day, it will necessarily be with Xi Jinping's China.  When ?  Nothing is less sure.
The Chinese would be the preferred partners for cross-border payments in cryptocurrency

Politics and technology each have their own dynamics

Roman Prokhorovthe Chairman of the Board of Directors of the Association of Financial Innovations, spoke to the Russian colleague on this alternative. For him, the first option is technically the most simple to put in place, but it would be less promising for the economic relations of his country. Conversely, the second seems more already more advanced, and so more fast put it in place.

Besides, he would see China as the first partner of this two-way system which would integrate the Russian and Chinese MNBCs within the same model. Here’s why :

Obviously, the implementation of cross-border settlements using MNBC will depend not so much on the will of the Russian side, but on that of our partners. This is why China seems the most likely candidate at this stage, given its technological and political readiness. »

The enthusiasm of Russian Central Bank must however be moderate by the political reality of the situation. Not sure that things are going as fast as she would like and for some Russian economic players, the horizon is distant before the implementation of such a platform. But recent history has accustomed us to counterfeet confusing and perhaps the Russian authorities will have developed their new gold-backed currency before their MNBC. Unless it’s the same…

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Faced with sanctions, Russia is accelerating on its MNBC