Russian central bank considers digital currency

Elvira Nabiullina, the head of Russia’s central bank, has emphasised the need for innovative solutions to address challenges in cross-border payments.

She highlighted ongoing issues such as difficulties in settling payments for imports and declining trade volumes, which have affected the country's economic dynamics.

Following a recent meeting of the central bank’s board of directors on key rates, Nabiullina underscored that finding new mechanisms for managing cross-border payments is a priority for the Bank of Russia.

"Of course, finding different mechanisms for cross-border settlements is in focus of our action," she said.

To tackle these challenges, the central bank is exploring the use of digital financial assets and central bank digital currencies (CBDCs) as potential solutions.

Nabiullina stressed the importance of collaborating with global partners to implement these digital solutions effectively.

"There are prospects for using digital financial assets, digital currencies of central banks — we are ready for this. But it is important that we find mutual understanding with our partners here," she stated.

The Bank of Russia is actively engaged in both bilateral and multilateral frameworks, including cooperation with BRICS countries, to navigate the complexities of cross-border payments.

The governor also pointed out that recent months have seen a deterioration in conditions for importers due to payment complications.

"In recent months, the situation with cross-border payments has become more complicated for importers," Nabiullina noted.

The decline in energy prices has contributed to reduced exports, while stable import levels have resulted in a shrinking trade balance from July to August.