The Bank of Russia is working on a project for cross-border settlements in the digital ruble

In the first quarter of this year, the Central Bank is going to start developing a model for cross-border transfers with a digital ruble. This was reported by Kommersant with reference to the presentation of the regulator.

The Central Bank has developed two options for interaction using this tool. The first model suggests that states should enter into separate bilateral agreements on the integration of digital currency platforms. At the same time, the platforms of each country must ensure the conversion and transfer of formats between countries within certain rules and standards.

Under the second model, all countries will connect to a single integration platform. It will allow, based on the developed common protocols and standards, to provide payments between digital currency platforms of different countries that connect to this platform.

Experts point out that the first model resembles traditional correspondent relations, while the second model resembles relations within the payment system. The first scheme of cross-border settlements is simpler in terms of implementation, but not so promising. The second model is more advanced, but its implementation requires the creation of a supra-country payment system. However, in the current geopolitical conditions, this is not entirely possible.

In this regard, experts believe that a bilateral scheme of interaction will be created first. At the same time, China will become the most likely partner for Russia, taking into account its technological and political readiness.

The Central Bank announced the start of work on promoting the use of digital financial assets (DFA) and cryptocurrencies in international payments in December. Now the Bank of Russia is engaged in the transformation of the system of foreign trade payments and settlements.

Russian President Vladimir Putin also spoke about the need to develop a system of international payments due to sanctions. As one of the options, he proposed the creation of a system based on blockchain technology.

Source: CryptoNewsHerald.com