Russian Central Bank Eyes Digital Currency to Overcome Cross-Border Payment Obstacles

Elvira Nabiullina, head of Russia’s central bank, has highlighted challenges in cross-border settlements, including payment issues and falling trade volumes. She emphasized the importance of finding new solutions, such as using digital currencies and cooperating with global partners, to address these issues.

Russia Faces Cross-Border Payment Issues Amid Declining Trade

Russian Central Bank Governor Elvira Nabiullina has outlined several issues Russia is facing with cross-border settlements, including difficulties with import payments and declining trade volumes, Tass reported on Friday. Speaking after the central bank’s board of directors meeting on the key rate, she emphasized the Bank of Russia’s focus on resolving these challenges and its exploration of digital currencies as a potential solution.

Nabiullina made it clear that finding new ways to manage cross-border payments is a top priority, stating: “Of course, finding different mechanisms for cross-border settlements is in focus of our action.” She highlighted the promise of digital financial assets and central bank digital currencies (CBDCs) but stressed the need for cooperation with global partners. The central bank governor clarified:

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 noted that the Bank of Russia is working through both bilateral and multilateral frameworks, such as BRICS.

Nabiullina pointed to worsening conditions for importers due to payment complications. She was quoted as saying:

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

A decrease in energy prices has further led to reduced exports, while steady import levels have contributed to a declining trade balance from July to August.

What do you think about the challenges Russia faces in cross-border payments and trade balance? Let us know in the comments section below.

Source