Russia is launching a brand-new payment system that is “bound by no restrictions” where digital currencies might be utilized in cross-border payments, stated Russian Finance Minister Anton Siluanov. “Two celebrations come to a contract, make settlement payments, and no other nation might action in and freeze such payments,” the leading authorities described.
Digital Currency ‘Bound by No Restrictions’ in Russia’s New Payment System
Russian Finance Minister Anton Siluanov stated Monday that a brand-new payment system will be released where using digital currencies in worldwide payments will be completely unrestricted, Russian news outlet Tass reported.
“We are launching an alternative system of payments based on modern technologies (digital financial assets, digital currencies),” the financing minister was priced quote as stating. He elaborated:
Digital currencies might be utilized in cross-border payments. This is simply at the earliest stage of conversations, however the future lies with using the digital ruble, the digital yuan, and other comparable currencies.
“This is a system of payments that is bound by no limitations. Two celebrations come to a contract, make settlement payments, and no other nation might action in and freeze such payments,” Siluanov highlighted.
Due to the financial sanctions enforced by the U.S. and other Western countries following the start of the Russia-Ukraine war, Russia has actually magnified its efforts to decrease its dependence on the U.S. dollar. The U.S. and Western allies have actually taken more than $300 billion in Russian reserve bank foreign currency properties frozen by sanctions.
The Bank of Russia has actually been checking out the production of a digital currency, the digital ruble, as a method to shift far from the U.S. dollar. A report released by the U.S. Congressional Research Service in July 2021 information that the Russian federal government accelerated its de-dollarization efforts in 2014, keeping in mind that the launch of a digital ruble “would further reduce Russia’s reliance on Western (and dollar-centered) payments infrastructure.”
Russia’s De-Dollarization Push
Finance Minister Siluanov also exposed Monday at an education marathon occasion that the Russian ruble and the Chinese yuan are currently changing the U.S. dollar in shared settlements in between Russia and China, Tass also reported. When asked if the ruble or yuan might change the USD, the leading authorities responded:
We are currently taking a look at this. For much better or even worse, I believe, this is the existing scenario. This is our currency … It is changing [dollar] currently. If we take a look at the structure of trade in between Russia and China, now more than 70% — it is currently in our nationwide currencies.
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