Russia is pushing to link its digital ruble, a central bank digital currency (CBDC), with BRICS countries in an effort to move away from the US dollar-centric international financial system.
The chairman of the Financial Market Security Committee of the Russian Chamber of Commerce and Industry said in an interview with local media that the digital ruble is aimed at international use and preparations are underway with the aim of launching it this year.
The Reserve Bank of India plans to put a proposal for linking member countries' CBDCs on the agenda of the BRICS summit in New Delhi this year. If approved, the proposal will explore ways to link the digital currencies of Brazil, Russia, India, China, and South Africa based on shared infrastructure and regulatory standards.
China, Russia's largest trading partner, is also accelerating its move to build a non-dollar payment system, recently reviewing plans that include cross-border use of the digital yuan.
Meanwhile, the CEO of Russia's largest bank, Sberbank, pointed to a lack of domestic demand, while the Chamber of Commerce emphasized the need for CBDCs to facilitate trade between BRICS countries.
Russian commercial banks favor the use of ruble-pegged stablecoins, but discussions with BRICS central banks are ongoing. The governor of the Russian Central Bank has also stated that cross-border use of stablecoins will be limited, while domestic use will be excluded.
The digital ruble is being evaluated as having potential uses in government surveillance and fraud prevention, and expectations are rising for increased transaction transparency and traceability through CBDC.
