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Bank Of Russia To Promote Digital Ruble In Foreign Trade As Finance Ministry Pushes For Crypto Option

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Bank Of Russia To Promote Digital Ruble In Foreign Trade As Finance Ministry Pushes For Crypto Option

Days after the two institutions agreed on the need for cross-border crypto payments, the finance ministry and the central bank of Russia are once again highlighting their different priorities. While the treasury department aims for legalizing cryptocurrency payments in the coming months, the monetary authority says it will “actively promote” its digital currency for international settlements.

Bank of Russia Seeks to Impose Digital Ruble for International Settlements

The Central Bank of Russia (CBR) will “actively promote” the employment of the digital ruble in cross-border payments, its Governor Elvira Nabiullina stated in a documentary aired by the Russia-24 TV channel. The film was devoted to the 220th anniversary of the Ministry of Finance of the Russian Federation.

The department recently announced it had reached an agreement with the monetary authority on the need to legalize international crypto payments in the face of Western sanctions. In the current conditions, “it is impossible to do without cross-border settlements in cryptocurrency,” the two regulators concluded, according to the ministry.

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These payments should be legalized soon, Deputy Finance Minister Alexey Moiseev told Russian media. Anatoly Aksakov, head of the Financial Market Committee at the State Duma, the lower house of Russian parliament, also joined calls to allow crypto payments in foreign trade.

On the backdrop of these statements by government officials about the importance of using cryptocurrency as a means of payment that can reduce sanctions pressure on Russian exporters and importers, the CBR indicated it intends to prioritize the use of the state-issued digital currency.

In her interview, quoted by Bits.media and RBC Crypto, Nabiullina insisted that digital financial assets (DFAs), those that have an issuer according to current Russian law, “are a desirable alternative to private cryptocurrencies.” Russia is also exploring stablecoin settlements with friendly nations.

CBR to Start Introducing Digital Ruble Domestically in 2023

The governor pointed out that many Russian banks and other financial organizations are interested or are already participating in the pilot project for the Russian central bank digital currency (CBDC), which will be completed by next year. She also remarked that the digital ruble platform will be linked to the digital currencies of other nations. The CBR chairperson stated:

We will actively promote the possibility of cross-border payments using the digital ruble.

Nabiullina added that subject to the successful completion of the pilot, the Bank of Russia will begin to gradually introduce the digital ruble in domestic circulation in 2023, by carrying out certain types of operations with the government-backed coin.

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At the same time, the finance ministry plans to start the regulatory process for cross-border crypto payments during the fall session of the State Duma, Moiseev said during the Eastern Economic Forum in Vladivostok this week. The official noted that even now these payments are not banned but emphasized it’s necessary to legally regulate the exchange of cryptocurrency with fiat money.

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Bank of Russia, CBR, Central Bank, Crypto, crypto payments, Cryptocurrencies, Cryptocurrency, Digital Currency, digital ruble, finance ministry, international payments, international settlements, Payments, Russia, russian, Settlements

Do you think Russia will adopt both the digital ruble and cryptocurrency in international settlements? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Account

Bank Of Russia Adds Digital Assets To Banking Chart Of Accounts

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Bank Of Russia Adds Digital Assets To Banking Chart Of Accounts

Central Bank of Russia has introduced digital assets, including the digital version of the Russian ruble, to the recently published draft of the new banking chart of accounts. In the future, financial institutions will be able to provide data about operations with these assets.

Russian Banks to Record Digital Currencies as Assets in Their Accounting Books

The Central Bank of the Russian Federation (CBR) has released the draft of the updated banking chart of accounts for next year. Starting from 2023, Russian lenders will be required to account for new types of transactions, including digital ruble flows and operations with digital financial assets (DFAs).

The monetary authority has been expanding the testing of its new central bank digital currency (CBDC) this year and hopes to pilot real-value settlements in early 2023. Authorities in Moscow are also working to more comprehensively regulate decentralized digital currencies.

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The current DFA law refers mostly to coins and tokens with an issuer but a new bill “On Digital Currency” aims to more fully cover cryptocurrencies like bitcoin. Amid sanctions imposed over an escalating war in Ukraine, Russia hopes to use both the digital ruble and crypto assets for international settlements.

Only one account has been reserved for the digital ruble while banks will have several accounts to reflect their DFAs in the sections “Acquired Digital Financial Assets” and “Issued Digital Assets,” the crypto page of the Russian business news portal RBC detailed.

Regulators explain the need for just one digital ruble account by pointing out that commercial banks will process only transfers of CBDC funds. The digital ruble will be issued by the Bank of Russia and stored in wallets at the CBR while credit institutions will act as intermediaries providing services to individuals and organizations such as executing transfers.

Russia’s central bank is actively pursuing its digital currency project with over a dozen banks now taking part in the trials of the CBDC platform. The regulator has been promoting its implementation in foreign trade while other institutions, most notably the finance ministry, want to also facilitate the employment of cryptocurrencies as a tool to circumvent Western financial restrictions.

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Account, accounts, Bank, Bank of Russia, banks, CBDC, CBR, Central Bank, chart of accounts, Crypto, crypto assets, Cryptocurrencies, Cryptocurrency, Digital Assets, Digital Currency, digital ruble, Payments, Russia, russian, Settlements

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Do you expect Russia to step up efforts to regulate digital currency payments in the coming months? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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5.7 tons

While The US Dollar Tramples The Euro, Pound And Yen, Russia’s Ruble Skyrockets Against The Greenback

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While The US Dollar Tramples The Euro, Pound And Yen, Russia’s Ruble Skyrockets Against The Greenback

While the U.S. dollar has soared in value against a basket of worldwide fiat currencies, Russia’s ruble climbed 4.5% against the greenback this week. During the first week of September, Russia told the press China would pay for natural gas with rubles and yuan. Moreover, Switzerland’s imports of Russian gold reached a high not seen since April 2020.

The Greenback Is Soaring, but Russia’s Ruble Is Also Rising Higher

This week the U.S. Dollar Currency Index (DXY) skyrocketed to new heights leaving a great number of fiat currencies worldwide badly bruised. For instance, two days ago, the European Union’s euro tapped a 20-year low against the U.S. dollar dropping to $0.973 on Friday.

Presently, the euro is even lower at $0.9690, and it is down 2.82% against the greenback during the past 30 days. 30-day statistics indicate the yen is down 4.72%, the sterling pound shed 8.17%, and the Canadian dollar lost 4.78%. The Chinese yuan breached a 7:1 exchange rate against the U.S. dollar for the first time in two years.

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After the ruble climbed 4.5% against the USD, the Russian currency slid to 56.87 per dollar following the climb.

However, Russia’s native fiat currency the ruble has been more resilient this year, and it started to see gains a month after the start of the Ukraine-Russia war. Toward the end of June, Russia’s ruble tapped a seven-year high against the U.S. dollar, and at the time economists said “don’t ignore the [ruble’s] exchange rate.”

This Friday, while America’s native fiat currency climbed to new heights against various currencies worldwide, the ruble climbed 4.5% against the USD. The ruble managed to do this while the DXY breached a 20-year high following the Federal Reserve’s recent rate hike. The rising ruble follows Russian president Vladimir Putin explaining earlier this week that he vows to use “all means available” to win the war with Ukraine.

China Pays for Gas With Rubles, Swiss Purchases 5.7 Tons of Russian Gold in August, Analyst Says Ruble Withdrawals Have Pushed the Currency Higher

There were also hints of nuclear retaliation from the Russian president, and he detailed he was mobilizing more troops. Additionally, Reuters reported during the first week of September that China would be purchasing fuel from Russia with rubles and yuan payments.

Gazprom CEO Alexei Miller told the press at the time that China paying in rubles and yuan rather than dollars was “mutually beneficial” for both partners. Furthermore, reports indicate that the Swiss Federal Customs Administration revealed Switzerland imported 5.7 tons of Russia’s gold reserves in August. The stash was worth roughly $324 million, and the Swiss have not purchased a cache that size in over two years.

The country’s customs department, however, claims that the Russian gold originally stemmed from Britain, and it further stressed that no financial sanctions were violated. Switzerland fully denied breaking any sanctions and said the 5.7 tons of bullion was originally shipped from the U.K. back in May.

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While the ruble’s exchange rate against the greenback has dropped a hair, it remains at 56.87 per dollar, at the time of writing on Sunday, September 25, 2022. While 30-day stats show the euro is currently down 2.82% against the U.S. dollar, the Russian ruble is up 4.32% this month.

Investing.com’s Geoffrey Smith says the surge for cash derived from Russians withdrawing massive amounts of money from their savings accounts. Smith further claims “Russians emptied their savings accounts in the wake of Wednesday’s mobilization call by President Vladimir Putin.”

He noted, however, that the surge in Friday’s ruble withdrawals was not nearly as large as the ruble withdrawals recorded last February. “The rise in demand for rubles led to a squeeze in interbank ruble rates, pushing the currency up in a market,” Smith wrote on Friday.

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5.7 tons, Bank of Russia, Central Bank, China, China rubles for gas, conflict, Crude Oil, cut rate, DXY, economics, EU, Euro, Gas, Geoffrey Smith, interest rate, OIL, pound, rouble, ruble, ruble crash, ruble falls, ruble plunges, Ruble Rises, Ruble strength, ruble withdrawals, Russia, russia bank run, Russia Ruble, russian bank run, russian gold, russian sanctions, Sanctions, Switzerland, Ukraine, US Dollar, US Dollar Currency Index, Vladimir Putin, War, yen

What do you think about the Russian ruble’s exchange rate skyrocketing this Friday and gaining 4.32% this month against the greenback? Let us know what you think about this subject in the comments section below.

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Sanctioned Russian Bank Tests In-App Operations With Digital Rubles

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Sanctioned Russian Bank Tests In-App Operations With Digital Rubles

A Russian bank, one of the country’s largest by assets, has conducted a successful trial with digital ruble transactions processed through its mobile app. The state-owned Promsvyazbank was one the institutions placed under Western sanctions earlier this year in connection with Moscow’s actions in Ukraine.

Russian Bank Experiments With Digital Ruble Transfers via Mobile Application

Promsvyazbank (PSB) is one of the first Russian lenders to join the trials of the central bank digital currency (CBDC) issued by the Bank of Russia. According to a report by the business news outlet Plus Journal, the bank has recently tested digital ruble transactions through its app for mobile devices.

To carry out the operations, participants had to pass a registration in the application and set up a digital wallet. Then, using their account, they were able to exchange regular electronic bank money for digital rubles and transfer digital cash to other clients of the bank as well as those of other banks taking part in the pilot project.

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All the information about the performed transactions was provided by the digital ruble platform operated by the Central Bank of Russia (CBR), and was immediately reflected on the balances of the users’ digital wallets in the smartphone app, the report details. The platform’s prototype was launched by the monetary authority late last year.

“PSB is one of the first banks to implement a simple and understandable technology for making transactions with digital rubles in a mobile application and successfully test it. We see great potential in this instrument, which we expect will become a new settlement standard in the Russian economy,” stated Senior Vice President Alexander Chernoshchekin, who heads the bank’s digital business unit.

The top executive added that the successful testing lays down the foundation for future operations with the digital ruble and opens up new opportunities for the Russian public and companies. Reliable and secure transfers in digital currency will be available to the population while the state will have additional tools to administer budget payments and targeted social payments, he elaborated.

The new settlement technology will help businesses solve the issue of automating all payments and internal business processes, Chernoshchekin added. Bank of Russia is responsible for the storage and accounting in the digital ruble ecosystem and CBR officials claim all payments are subject to encryption and other measures to prevent fraud.

No less than a dozen credit institutions have decided to join the testing of the digital ruble, once their systems are ready to connect to the CBDC platform, as part of the trials that started in early 2022. This past summer, Russia accelerated the schedule for the project, aiming for a full launch of its digital currency in 2024.

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Promsvyazbank is among the top 10 banks in Russia by assets and deposits. Once a private bank owned by Russian oligarchs, the brothers Dmitry and Alexei Ananyev, it was nationalized by the Russian government in 2018 and has since been recognized as a bank supporting Russia’s defense industry. It has been targeted with sanctions imposed over Russia’s military intervention in Ukraine.

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Bank, Bank of Russia, Banking, CBDC, Central Bank, Cryptocurrency, Digital Currency, digital ruble, Digital Wallet, Mobile App, operations, Promsvyazbank, PSB, Russia, russian, Test, Testing, tests, transactions, Trial, trials

Do you think Russia may introduce the digital ruble earlier than planned? Share your expectations in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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