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Russia to develop CBDC payment system amidst sanctions

Russia's Central Bank working on CBDC

Russia’s Central Bank is planning to start working on a payment system using a digital currency (CBDC) as a way to deal with ongoing sanctions caused by the invasion of Ukraine.

The bank will study two possible models for this payment system in the first quarter of 2023.

The first model would involve other countries making agreements with Russia to integrate their CBDC systems, while the second model would be a hub-like platform shared with other countries to make payments.

Experts think that the second model is more advanced but harder to put into action.

The main concern is whether other countries will want to cooperate with Russia, due to political reasons rather than technical ones.

Previously, the bank had stated it plans to release its digital currency by 2024.

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