Head of the State Duma's Financial Market Committee: National Digital Currency Will Be Considered for Bilateral Agreements Between China and Russia

Anatoly Aksakov, head of the State Duma’s Financial Market Committee, has discussed the use of national digital currencies for bilateral transactions between Russia and China. In a recent interview with Russian media, Aksakov stated that these instruments will be considered for such transactions as soon as the technological and regulatory foundations for this task are established.

Head of the State Duma's Financial Market Committee Briefs on the Use of Russian and Chinese Digital Currencies for Bilateral Transactions

National digital currencies are now increasingly seen as an alternative to traditional fiat currencies for trade settlements. Anatoly Aksakov, head of the Financial Market Committee of the State Duma, Russia’s equivalent of the U.S. House of Representatives, has predicted the use of national digital assets as a payment instrument for international bilateral trade between Russia and China.

In an interview with TASS, Russia's official news agency, Aksakov stated:

Of course, central bank digital currencies will be considered as one of the payment instruments at the bilateral level, as soon as the necessary technological and regulatory conditions for this are created.

This means that the two countries can establish a digital channel for companies to transact and pay in digital rubles and digital yuan, contributing to the smooth implementation of cross-border payments.

Using such a channel could help smooth out trade between the two countries, which are currently affected by issues arising from the implementation of unilateral sanctions by Western countries. Recent reports have suggested that Chinese banks are refusing to process payments for imports of dual-use products, which can be used for both civilian and military applications, to avoid US sanctions.

The situation is currently being studied, and even extreme solutions such as a barter system are being considered to solve the problems of Russian importers. Russian Foreign Minister Sergey Lavrov supports the idea, stressing that even if 95% of bilateral trade with China is settled in national currencies, he sees no problem with this if it helps reduce dependence on bank transfers.

What do you think about Russia and China using their digital currencies to settle international transactions between the two countries? Let us know in the comments below.
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