Russia Plans Platform for Digital Ruble Transactions

Russia, in collaboration with the central banks of BRICS nations, is working on launching the BRICS Bridge platform for transactions in national currencies, including digital ones. This was reported by Izvestia, citing Deputy Finance Minister Ivan Chebeskov.

The new system will enable direct transactions between countries and reduce the impact of Western sanctions on international payments. 

It is anticipated that transactions could be conducted in digital rubles, yuan, or rials. There is also discussion about introducing a unified BRICS digital currency, pegged to a basket of the member states’ currencies.

Another option could involve central banks issuing special digital financial assets (DFAs). Similar to stablecoins, their value could be tied to national currency rates.

The initiative has gained relevance following the implementation of the EU’s 14th package of sanctions against Russia. This package, among other things, prohibits European companies and their subsidiaries in third countries from working with the SPFS (Russia’s SWIFT equivalent) and organizations using it.

Additionally, restrictions have been placed on transactions with banks and cryptocurrency services from third countries that facilitate deals with the Russian MIC.

Back in late February 2024, Russia authorized the use of DFAs and utility digital rights for international agreements. A bill was also introduced to the State Duma, which introduces the concept of a secured stablecoin and permits its use in foreign trade transactions. 

In June, media reports revealed the Bank of Russia’s plans to introduce currency control over DFA transactions.