The Association of International Financial and Interbank Telecommunication (SWIFT) is a cross-border payment system, helping users around the world to shop, transfer money, pay fees... Now, with organizations With major financial institutions in Russia removed from the system and the currency depreciating in value, some speculate that Russia may be looking to China for an alternative.
Russia Leveraging China's CBDC?
The digital yuan made its debut at the Beijing 2022 Olympics in early February. Furthermore, Chinese officials said the type CBDC This generated $13.68 billion worth of trading volume.
According to the report, there are more than 260 million digital yuan users, and the government is still trying to convince or possibly pressure foreign companies in China to accept payments in digital currency. CBDC.
For now, analysts are keeping an eye on whether Russia will choose to adopt a digital yuan as an alternative to the SWIFT system.
There are arguments for and against this opinion. China, for example, is heavily involved in the development of not only its own CBDC, but also participating in a multi-CBDC platform with the central banks of other countries. From this perspective, it is possible to allow Russian users to participate in promoting cross-border adoption of the digital yuan, while helping Russia reduce its dependence on the SWIFT system.
On the other hand, China can take some appropriate measures, aimed at reaching Russia, without attracting sanctions against its own businesses. Plus, China's digital yuan is still in its infancy and may not be ready for cross-border use cases, especially in war.
However, investors cryptocurrency Everyone knows this link well, as Santiment noted that “China” is still among the top 10 trending keywords, along with the wars between Russia and Ukraine.
🇷🇺🇺🇦 Awareness now appears to be at full capacity among #crypto circles. Among our top 10 trend algorithm, all 10 keywords are related to the #war. With this development, #cryptocurrencies will fluctuate at peak correlation with each piece of news.https://t.co/6fUEwTxtZn pic.twitter.com/SgnqRf92qq— Santiment (@santimentfeed) February 25, 2022
Russia piloting digital ruble
Earlier this month, Russia started piloting its CBDC project for a digital ruble, which may be completely different from the one mentioned in today's news.
The central bank of Russia has expressed hostility towards private cryptocurrencies, advocating for their outright ban. However, President Putin and the Ministry of Finance were more open to Bitcoin because of the advantages it can bring to the country.
Some doubt that Russia can use cryptocurrency to bypass sanctions and aid itself in war, as Ukraine did. However, there are no reports of this yet.
This month, the Russian government reached an agreement to regulate cryptocurrencies as “currency” instead of banning them.