Top MP: China and Russia’s CBDCs may be compatible -TGN

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

Per RBCthe remarks were made by Anatoly Aksakov, a member of the State Duma from Kanash constituency in Chuvashia and the chairman of the State Duma Committee on Financial Markets.

Aksakov told attendees at a CBDC-related forum:

“We in the Duma really hope that (international CBDCs) will be actively used in foreign economic activities. This makes it possible to use our digital ruble for international payments.”

On China, the MP said:

“System compatibility options 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 the tokens could be “used in the economic turnover of our countries (China and Russia)”.

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

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

Denis Polyakov, the deputy director of the department of the national payment system of the Russian central bank, claimed that the digital ruble offers domestic companies “an opportunity to reduce costs”, as the commission for payments “will be only about 0.3%”.

Polyakov added that ordinary citizens could use the CBDC to “make quick, commission-free transfers.”

Earlier this month, Russia’s prosector general visited Beijing, where he told his Chinese counterpart that the two nations should work together on CBDC regulation.

Beijing has yet to publicly answer this sentiment.

But it also tests the cross-border capabilities of the e-CNY as relations between China and Russia continue to improve.

Russia’s CBDC push: Chinese inspiration?

Aksakov is also the main architect of Russian crypto law.

However, his attempts to pass crypto laws have been largely frustrated by a standoff between crypto-skeptic central bank governor Elvira Nabiullina and pro-industrial ministries.

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

She previously served as economic adviser to Putin and Russia’s economic development minister.

Nabiullina has spoken out in favor of introducing a Chinese-style crypto ban and accelerating the launch of a digital ruble.

Analysts believe the digital RUB could be fully rolled out by 2025, but Nabiullina hopes to begin a “real-world” CBDC pilot by early August at the latest.