According to a local media Kommersant’s report, published on January 9th, 2022, in the first quarter, the Bank of Russia is planning to start developing a cross-border settlement model using the digital ruble (the Russian currency). The presentation of the Central Bank showcases two models that can be taken as the basic version.
It must be noted that the development of cross-border interaction models is scheduled for the first quarter of this year, and even two options for possible models are given.
In the first option, the platforms of each country ensure the conversion and transfer of formats between countries according to agreed rules and standards. The second option involves connecting the country to a single integration platform, which allows, on the basis of developed common protocols and standards, to ensure payments between digital currency platforms of different countries connected to it.
According to the Head of the Association of Electronic Money and Money Transfer Market Participants (AED) Viktor Dostov, the first approach is similar to correspondent relations “each with each.”
“Interaction protocols are concluded between pairs of countries, allowing the transfer of value from one CBV to others, this may be a conversion protocol or currencies begin to live in parallel on each of the platforms,” he added.
Roman Prokhorov, Head of the Board of the Financial Innovations Association (AFI), is sure as he added “Obviously, the implementation of cross-border settlements using the CBCC will depend not so much on the readiness of the Russian side, here our jurisdiction to promote the CBCC project is confidently in second place after the PRC, but on the readiness of our partners”.
“Other schemes for the implementation of cross-border settlements on the basis of the CBSS, including the model of the supra-country payment system, will depend on the pace of development of national CBSS projects in friendly jurisdictions,” he says.
Vice-President of the Association of Banks of Russia Alexei Voylukov pulls attention to the fact that the main issue is not a technical implementation, but a political one. According to him, the introduction of the digital ruble will not change or improve the situation here, so that in the foreseeable future, pilot operations can only begin with very close friendly countries if they, like us, are technically ready by that moment.
It must be noted that 114 countries, that represent almost 95% of global GDP, are currently researching or exploring the development of CBDCs, with over 20 countries planning to pilot a CBDC by 2023 including the United States, the EU, Australia, Brazil, South Korea, and Russia.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/01/11/russias-central-bank-gearing-up-on-cbdc-settlement-system/