The country’s central bank has plans to begin working on it as soon as this quarter.
According to a report by a local news publisher Kommersant, the Central Bank of Russia is about to begin researching and evaluating the possibility of implementing one of two potential CBDC settlement models.
The urgency for such actions is dictated by the current geopolitical situation the country finds itself in. The invasion of Ukraine began on February 24th, 2022, so as it’s been almost a year, the sanctions have become more palpable, and the need for an active, working cross-border settlement system that would be functioning based on a working CBDC got more obvious for the Russian government.
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As mentioned, the central bank of Russia is about to study two possible CBDC settlement models. The first one is based on the idea that partner countries would sign separate bilateral agreements with Russia. Each country would designate and agree upon their own terms and conditions of integrating their CBDC systems.
The second hypothetical model proposes a more centralized platform. It would be used by Russia, and by other countries to interact, convert, and transfer assets. The platform would be based on shared protocols and regulatory rules to ensure the system’s functionality.
Russia’s aim to speed up the implementation of a working CBDC system corresponds with efforts from other BRICS members' initiatives. Economies such as China, or India have been vocal about similar ambitions, while Brazil and South Africa also continue exploring the possibilities.
