Anatoly Aksakov, head of the State Duma’s Financial Market Committee, has discussed the use of national digital currencies for bilateral settlements between Russia and China. In a recent interview with Russian media, Aksakov stated that these instruments will be considered for such settlements as soon as the regulatory and technological platforms for this task are established.
Head of the State Duma’s Financial Market Committee: National Digital Currencies to Be Considered for Bilateral Settlements Between China and Russia
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State Duma’s Financial Market Committee Head Profiles Use of Russian and Chinese Digital Currencies for Bilateral Settlements
National digital currencies are now slowly starting to be considered an alternative to traditional fiat money for trade payments. Anatoly Aksakov, head of the Financial Market Committee of the State Duma, the Russian equivalent of the U.S. House of Representatives, has predicted using these national digital assets as a settlement tool for international Russia-China bilateral trade.
In an interview given to TASS, the Russian official news agency, Aksakov stated:
Of course, digital currencies of central banks will be considered as one of the settlement instruments at the bilateral level, as soon as the necessary technological and regulatory conditions for this are created.
This means the two nations might establish a digital channel for companies to trade and pay with the digital ruble and the digital yuan, contributing to the smooth implementation of cross-border payments.
Using such a channel might help regularize the turnover between the two countries, which is currently being affected by problems derived from the implementation of unilateral sanctions by Western countries. Recent reports indicate that Chinese banks are refusing to process payments for imports of dual-use products, that can be leveraged for civil and military applications, avoiding being sanctioned by the U.S.
The situation is now being studied, and even extreme solutions like a barter system are being considered to fix the problems of Russian importers. Russian Foreign Minister Sergey Lavrov supported this idea, stressing that even when 95% of the bilateral trade with China was settled in national currencies, he did not see issues with this if it helped reduce the dependence on bank transfers.
What do you think about Russia and China using their digital currencies to settle international transactions between the two nations? Tell us in the comment section below.
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