Russia is eyeing to remove the dollar’s grip on BRICS by fast-tracking the digital ruble, and making it trade within member countries. The central bank is aiming to push the ruble ahead to strengthen the nation’s economy from sanctions.
BRICS member China could be the first nation to accept the digital ruble after launch. “The digital ruble is first and foremost an international project,” said Timur Aitov, a member of the Russian Chamber of Commerce, to Plus World.
The internationalization of the digital ruble could make its way into the BRICS bloc. Almost all the 11-member nations are working towards forming a central bank digital currency (CBDC). A few countries are currently in pilot testing mode and could roll out the financial tech in the coming years.
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BRICS: Russia’s Biggest Bank Skeptical on Digital Ruble
German Gref, the CEO of Sberbank, Russia’s biggest bank, said that he supports the digital ruble for trade within BRICS members. However, he cautioned that the e-ruble makes little to no sense to be allowed for individual or retail needs. He called it a requirement for trade between countries and alliances only.
“I don’t understand why an individual needs the option to use a CBDC,” said Gref in July to C News. “And neither do banks or businesses. I still don’t really understand why we need the (digital ruble).” However, he stressed that the digital ruble for BRICS trade is the right way to put the currency to work.
Just recently, the Reserve Bank of India issued a circular to BRICS members to link their central bank digital currencies. The prospects will most likely be discussed at the upcoming summit in India’s New Delhi. Russia could also put the digital ruble idea ahead for discussion at the 18th summit. That also depends on how far Russia has come in the formation of the e-ruble.
