CBDCs from China and Russia may be compatible

The flags of China and Russia are mixed with each other.
Source: daboost/Adobe

A prominent Russian lawmaker says China and Russia’s CBDCs may be “compatible” and could be used to make international payments between the nations.

By Red blood cellsthe comments were made by Anatoly Aksakov, a State Duma member from the Kanash constituency of Chuvashia and chairman of the State Duma Committee on Financial Markets.

Aksakov told attendees of a CBDC-related forum:

“We in the State Duma really hope that [international CBDCs] it will be actively used in foreign economic activity. Consequently, it will be possible to use our digital ruble for international payments.”

On China, the parliamentarian said:

“Options for system compatibility can be considered. For example, the Chinese [CBDC] system and ours [could be made compatible] to allow conversions between the two digital currencies.”

Aksakov said that the tokens could “be used in the economic turnover of our countries.” [China and Russia].”

The parliamentarian added that it was “necessary to introduce a new currency into the country in stages”, a model that Beijing has followed in the past.

Instead of setting a national launch date, the Chinese government has created an ever-expanding CBDC pilot zone for its digital yuan.

Denis Polyakov, deputy head of the Department of the National Payment System of the Central Bank of Russia, said that the digital ruble will give domestic companies “an opportunity to reduce costs”, since the commission for payments “will be only about 0.3%”.

Polyakov added that ordinary citizens could use the CBDC to “make quick transfers without commission.”

Earlier this month, Russia’s attorney general visited Beijing, where he told his Chinese counterpart that the two nations should cooperate on the issue of CBDC regulation.

Beijing has yet to publicly reciprocate this sentiment.

But it is also testing the cross-border capabilities of e-CNY as China-Russia relations continue to improve.

Russia’s CBDC push: Chinese inspiration?

Aksakov is also the main architect of Russia’s crypto legislation.

However, his efforts to get crypto laws passed have been largely thwarted by an impasse between Central Bank Governor Elvira Nabiullina, a crypto-skeptic, and pro-industry government ministries.

Nabiullina is one of President Vladimir Putin’s closest allies.

She previously served as Putin’s economic adviser and Russia’s Minister of Economic Development.

Nabiullina has spoken out in favor of enacting a China-style crypto ban and speeding up the launch of a digital ruble.

Analysts believe that digital RUB could be fully implemented by 2025, but Nabiullina hopes to start a “real world” CBDC pilot in early August at the latest.