Russia hosts Brics talks over cross-border use of CBDCs

The Bank of Russia is holding consultations with delegates from the Brics economic bloc and other friendly countries over the cross-border use of central bank digital currencies (CBDCs), Russian state media has reported.

The bank’s governor Elvira Nabiullina made the announcement on state-owned RIA Novosti on January 30. She said the Bank of Russia opposed the use of cryptocurrencies for domestic payments. However, she added that she supported the use of cryptocurrencies and CBDCs for foreign trade, and that parliament was discussing legislation that would allow this. 

Her comments came on the day that representatives from the newly expanded Brics met in Moscow. Originally comprising Brazil, Russia, India, China and South Africa, the bloc admitted Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates on January 1.

Argentina’s previous government had also accepted the invitation to join the Brics. However, the country’s recently elected president Javier Milei reversed the decision, vowing instead to pursue closer ties with the West.

Some Brics states, including Russia, have been using renminbi and the UAE dirham as payment tools in place of the US dollar.

On January 29, the UAE and China made progress in connecting their own CBDCs. The UAE’s central bank made its first cross-border payment in digital dirhams and sent 50 million dirhams ($13.6 million) on the mBridge platform directly to China, Gulf News reported.