Russia is cornered. Not just from the west, but also from other nations that favor the USD over any other forex pair. This is one of the reasons even BRICS can't force it's own token like EUR in the world. It seems BRICS is more focused on trade than currency.
This goes to show that Russia can't force it's own CBDC on other nations. And that would lead to them playing well with other forex pairs and the cryptos. This also means Russians won't be forcing the Digital Rubble for some time now.
Digital Rubble is in circulation for more like 80% of the current transactions and slowly the cash is shrinking. Not many people are opting for the cash payments as of now. Which is a serious thing for the cash and it goes to show crypto and CBDC does have the future.
So what are some of the changes Russia is planning to enforce and what they intend to let go in the forex market.
Image Credit: Wikimedia Images
Adoption of Digital Rubble in Pandemic and War times
Russia went through the crisis of the pandemic too. And they had their own shares of the issues after that. This is where the adoption of the rubble started in digital form. And then slowly took off making the international news. Which is the case for most of the CBDCs.
Next thing is that Digital rubble turned out to be forced into the circulation as the war times are ahead. And people are relying more on the digital to pay off online and offline places. Which goes to show how the 80% of the adoption came out to be. This is a good adoption rate as anything over 50 shows the consensus of the citizens.
Central Bank of Russia and Forex Pressure to accept CBDCs
CBDC is a reality in russia and they call it Digital Rubble. This is now going to be used among the nations that accept the currency without having to manually transfer the currency through forex middle organizations like SWIFT etc. So now the pressure is building on Russia.
They are already being cornered by the west on the acceptance and the spending of the Rubble. And they are feeling the pressure and so they are accepting the USD based stablecoin and also the CBDCs too. So there would be no denial for any other CBDCs. In terms of the forex through crypto exchanges, Russia is open for all CBDCs for now.
Future of Russian Cash
Rubble in cash form is struggling. It's not that they are going to get away with it. Like only 20 percent of the people are still making use of the cash and they are not going to change that. The reason being the digital banks and the atms are not going to be accceptable in all the places.
Digital payments are going to be including the CBDCs now. Which is expected with this year onwards. So the peopple won't even notice if they are using the CBDCs or the digital payment which used to be like UPI in the past. So cash has a future but in a limited places and eventually it would be only classically limited acceptable payment system.
If in near future there would be more use of the bio weaponsor potential wars, then digital currencies and the CBDCs are going to be dominating and people won't be standing in the line for the cash. And world will continue to go on from the home and the desk without having to crowd the lanes to take the funds out.
Russia just going to make sure that their citizens won't suffer and are open to all international CBDCs.