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Prospects for Transformation of the System of International Settlements in the Russian Federation Based on Central Banks Digital Currencies

Author

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  • Anton V. Navoy

    (Financial University under the Government of the Russian Federation, Moscow, Russian Federation)

Abstract

Fragmentation of the global financial and economic space and difficulties in the organization of international settlements cause the restructuring of the international settlement system of the Russian Federation. Russia’s need for a reliable system of international settlements is due to its rapid involvement in the system of international trade, the need for high-tech imports, sales of raw materials and high-grade goods. One of the most promising options for a new design of payment infrastructure protected from sanctions pressure is the creation of an international payment system based on the peer-to-peer model using central bank digital currencies (CBDC). The Committee on Payment Infrastructures is actively theorizing this model. To date, the Russian Federation (digital ruble) and the People's Republic of China (digital yuan) demonstrate a high level of readiness to make settlements in the CBDC. The creation of a payment system based on CBDC fundamentally changes the entire landscape of international settlements, not only reducing the cost of transactions, but also ensuring their reliability, transparency and protection from the negative influence of other countries. Of particular interest is the model of clearing using CBDC in BRICS countries, which will allow for centralized netting of mutual positions of the countries in national currencies and gradual displacement of currencies of developed countries from mutual settlements.

Suggested Citation

  • Anton V. Navoy, 2024. "Prospects for Transformation of the System of International Settlements in the Russian Federation Based on Central Banks Digital Currencies," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 2, pages 43-58, April.
    • Handle: RePEc:fru:finjrn:240203:p:43-58
    DOI: 10.31107/2075-1990-2024-2-43-58
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    References listed on IDEAS

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    1. Morten Linnemann Bech & Rodney Garratt, 2017. "Central bank cryptocurrencies," BIS Quarterly Review, Bank for International Settlements, September.
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    More about this item

    Keywords

    international trade; international financial organizations; international settlements; BRICS; clearing; central bank digital currencies; digital assets;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation: Models and Applications
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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