Russia to Launch CBDC in 2025

Earlier, Russia was set to begin testing cross-border crypto payments next week in an attempt to circumvent international sanctions. However, some sanctions experts said the mission would be successful.

Because, the policy, which was passed in late July 2024 and immediately signed into law by Russian President Vladimir Putin, does not lift the existing ban on the use of cryptocurrencies as legal tender for regular payments in Russia. Instead, it allows cross-border payments with crypto.

The bill that would allow cross-border crypto payments is considered unclear. Because the law does not determine the rules for transactions.

Instead, experts say the law hands Russia’s Central Bank the power to oversee the experimental regime.

Russia’s economy has been hit hard by a series of sanctions imposed by the United States and other countries following its invasion of Ukraine.

Since Russia’s invasion of Ukraine in February 2022, Russia has faced 16,500 sanctions from the US, UK, EU, Australia, Canada and Japan.

“The passage of this bill by the Russian government signals a continuation of Russia’s evolving strategy to evade Western sanctions,” said Valerie Kennedy, director of investigations at blockchain analytics firm Chainalysis, as quoted from the CoinDesk page.

The European Union has frozen about half of Russia’s total foreign currency reserves, worth 300 billion euros ($332 billion), including 70 percent of the Russian banking system’s assets.

Several Russian banks were disconnected from the interbank messaging system, the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

“It is difficult for Russia to avoid US dollars and euros through the SWIFT system, which has created an increased risk of secondary sanctions,” Kennedy said.