Russian Official Predicts International CBDC Settlements Will Become Common Practice Within 5 Years

Russian State Duma Official Anatoly Aksakov is betting on the future of international trade settlements with central bank digital currencies (CBDC). Aksakov, who chairs the Financial Markets Committee, predicts that within the next five years, CBDCs will become the norm for global trade transactions, despite the limited current use of these digital currencies.

Speaking at the St. Petersburg International Economic Forum (SPIEF), Aksakov highlighted the potential for CBDCs to revolutionize international trade settlements. While acknowledging that the necessary technological infrastructure is still in development, he expressed confidence that CBDCs will play a crucial role in future trade exchanges.

Aksakov also discussed Russia’s plans to leverage its upcoming CBDC, the digital ruble, for international payments. He suggested that the digital ruble could be used for cross-border transactions as early as next year, with potential initial partnerships with China and Belarus.

With China already making strides in CBDC adoption through the digital yuan and initiatives like project Mbridge facilitating CBDC exchanges, the prospect of CBDC-based trade settlements is becoming increasingly tangible. Aksakov hinted at the possibility of launching CBDC settlements with China and Belarus, citing their experience and readiness in this area.

As countries continue to explore the potential of CBDCs in global trade, the future of international settlements may increasingly rely on digital currencies. Share your thoughts on using CBDCs for international trading settlements in the comments below.