Investing.com – Russia is reportedly planning to create and use a digital for mutual settlements with China. This new currency is currently being tested for payments with international banks, and the pilot project should be completed next year.
Due to global sanctions against Russia for its actions against Ukraine, the central bank is looking for another way to transact worldwide. Over the past week, the United States Treasury Department has sanctioned 22 other Russian-based companies and entities. These sanctions add to an already long list of Russian entities with which the United States does not want to do business.
In this context, Anatoly Aksakov, Head of the Finance Committee of the Lower House of the Russian Parliament, commented:
“The subject of digital financial assets, digital ruble and cryptocurrencies is currently escalating in society as western countries impose sanctions and create problems for bank transfers, including in international settlements.”
He added that the direction the country is looking to take, using a digital currency, is critical because it allows financial flows to bypass systems that are against dealings with Russia.