The Digital Ruble and BRICS Bridge?

By July 1, 2025, the largest Russian banks will have to provide their clients with the ability to conduct transactions in digital rubles, according to the Russian Central Bank. Pilot testing of the digital currency is underway with 12 banks participating in it.

The digital ruble is an electronic form of national currency. It is a unique digital code – a token – that is stored in digital wallets on a special platform of the Central Bank. The bank intends to issue it as an addition to the existing means of payment.

The digital ruble could become a fast, convenient and reliable means of cross-border payments, which is important for Russia in the context of sanctions pressure and exclusion from SWIFT, as well as its de-dollarization policy.

To seamlessly conduct financial operations with its partners, Russia needs a system based on the interaction of national digital currencies.

According to the Central Bank, there are two options: an integration of two platforms, i.e. the digital ruble and other digital currencies; or operations on national currency platforms through a third common system.

Together with the central banks of the BRICS countries, Russia is working on creating a new settlement and payment infrastructure that will allow payments to be made in national currencies, including digital ones.

A multilateral digital settlement and payment platform “BRICS Bridge” that could connect the financial markets of BRICS members is currently under consideration by the organization.

The development of a system immune to political pressure, abuse and external sanctions interference has been going on since the 2023 BRICS summit in South Africa.

The issue of an independent multilateral digital platform is likely to be a focus point of the October BRICS Summit in Kazan, according to Russian Federation Council Speaker Valentina Matviyenko.

Sputnik / ABC Flash Point News 2024.