The Central Bank of Russia (CBR) has outlined two potential models for developing a central bank digital currency (CBDC) for international payments. According to a presentation seen by the business newspaper Kommersant, the central bank will explore bilateral interlinking with other domestic CBDCs or a shared platform that supports multiple CBDCs, starting in Q1 2023.
In 2021 the Bank for International Settlements (BIS) published a report on the potential for using CBDC for cross border payments, or multi-CBDC (M-CBDC), outlining three models. The models that the CBR plans to use represent two of them. There are already several cross border CBDC trials, with the most advanced being MBridge involving the BIS Innovation Hub, and the central banks of China, Hong Kong, Thailand and the UAE.
The leader of Russia’s Financial Innovation Association told Kommersant that China is the most likely first partner in the initiative, because of technological and political readiness.
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