A top Russian lawmaker revealed on Monday that Russia plans to use CBDC in mutual deals with China. after the country launches a digital ruble early next yearas it seeks to reduce the global financial hegemony of the US.

The Bank of Russia seeks to facilitate settlements in the digital ruble in 2023.

Sanctions against Russia for its actions in Ukraine have reduced Russia’s access to vast amounts of global financial market infrastructure. The Bank of Russia is already working to connect all Russian banks to the digital ruble next year as it speeds up plans to circumvent sanctions.

“With that in mind, Russia is on the hunt for alternative means of conducting transactions,” Anatoly said. Aksakov, head of the financial committee of the lower house of Russia’s parliament, in an interview with Russia’s parliamentary newspaper.

Aksakov further stated that the next step for the digital ruble would be to launch it for mutual agreements with China, which has already tested its digital yuan.

“If we launch this, other countries will start actively using it in the future, and the US control over the global financial system will effectively end,” Aksakov said.

Western countries are trying to isolate Russia. As a result, cooperation with Beijing has become increasingly important for Moscow. The two countries have strengthened trade and Russian companies have started issuing debt in yuan.

“The topic of digital financial assets, the digital ruble and cryptocurrencies is currently intensifying in society, as Western countries impose sanctions and create problems for bank transfers, including in international agreements,” Aksakov added. He further said that the digital address is key because financial flows can bypass systems controlled by hostile nations.

Why is Russia embracing crypto?

Earlier this month, Russia revealed that it is in discussion with a number of friendly countries about launching clearing platforms for cross-border stablecoin deals. On September 6, Russia’s Deputy Finance Minister Alexey Moiseyev revealed that the nation is currently working with various countries to create bilateral platforms for not using dollars and euros.

Russia has been known for its harsh stance against the use of cryptocurrencies, while the Bank of Russia has been pushing for a ban on all crypto activities in the country. In July, President Vladimir Putin signed a law banning digital payments.

But that will change soon, as the country hopes that legislation encompassing cryptocurrencies will emerge this year. The Ministry of Finance and the Bank of Russia recently agreed that it is impossible to do without cross-border crypto deals in the current environment, where the country has been sanctioned due to its invasion of Ukraine.

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