Topic: Will sanctions force Russia to create a CBDC of its own? - page 2. (Read 256 times)

Going by China is not a good option and I Know Putin himself is quite aware of that, the truth is that Russia cannot be subjected to any country and cant stand to begin to develop a problem with china at long run, and creating a CBDC is the worse option here as well except they go for bitcoin, why is because launching a CBDC is just a showcase to advance the already delapitated Rubble into display in another form (digital), there economy will still be tie to the same condition on Rubble if they launch CBDC, therefore i see it as not a game changer in this regard for now.


But it is largely possible for the whole world not to give in on Russia economy, an economy is said to be stable if the world recognizes it, value it and patronize it, if Russia built it own system on blockchain and run CBDC who will patronize them? can Russia survived all by itself? No, there must be concession with other economies and nations to in other to build an outstanding result, a market that lacks patronage is a void as air in a vacuum.



It is simple, Putin should realize what he did as a global genocide which is unacceptable by any chance nor tolerated and make through his way to amend his actions to gain back the world's interested, secondly Russia should have a change in power. and lastly launch CBDC isn't the solution but rather compound to it, what about the international ties Russia has lost with many countries, who want to be identified with Russia as for now? none, the only solution is bitcoin and not Russia's Digital Rubble.

In my opinion, the introduction by Russia of its digitized ruble will in no way change the situation with the international sanctions imposed against it. The digital ruble is only an improved banking system for the non-cash ruble. The digitized ruble will become faster and more efficient in its transactions. But some of the sanctions concern the prohibition of Russian banks from operating in the international financial sector, another part led to the freezing of Russia's financial assets outside of Russia, and others imposed restrictions or a complete ban on the import and export of certain groups of goods. That is, the sanctions are aimed at significantly restricting Russia from trading with the outside world, and the emergence of a digitized ruble will not be able to improve this situation in any way.

What is the benefit of digital currency if most of the world will not accept it? Let's say that Russia has its own CBDC at the moment, it would have to convince all its allies to accept the currency and that would make trading somewhat easier for them - but that doesn't solve their problem with sanctions imposed on almost all major countries.


I know there have been some stories that they are working on it, but as I have already written I do not believe that something like this can help them save their economy. In 5-10 years, Russia can be back to where it was before the war because it has what the world needs (oil, gas, nuclear fuel ...), but only if war ends as soon as possible. Of course, the condition for lifting the sanctions will be for Putin to step down, but he can always set up a puppet to rule for him.

People are very forgetful (or pretend to have forgotten), so it is possible that Germany is leading the EU, and 80 years ago they caused the deaths of tens of millions of people - Serbia, which only 30 years ago did the same thing Russia does today, is a candidate to join the EU without changing their foreign policy towards their neighbors at all.

They can do that but I don't think that they will. Although they've got a new rule that it's going to be Rubles that shall be used to pay for their commodities needed by other countries.
I guess that's already good enough for them not to make their own CBDC. But as they have already been aware about the potential of having their own crypto through CBDC, who knows what's on it for tomorrow.

Countries can simply ban Russia's digital blockchain and not interact with it as a way of imposing sanctions, just as some countries have done with Bitcoin. Of course it would be possible to trade it P2P without banks or government intervention, but this would have little effect to the country as majority the trades that boosts economies do not happen covertly, but rather publicly between Nations.

Few weeks ago, Russia requested that E.U Nations purchase their oil in ruble as a way to boost the currency and in turn the economy.
Creating a CBDC would not evade sanctions, it would just be another centralized digital currency.

They may as well, as the Russian economy is at junk status right now they don't have much to lose. However, because it is the sensible option for them to be doing, it would potentially make them pioneers in the field, it is likely that the government will do exactly the opposite and not launch it. They're looking for ways around sanctions, but it might only be a useful currency for internal citizens of Russia, as few people would be willing to trust the Russia government to have control over a digital coin, especially when it looks like the country is heading towards a default right now. Currency does strongly rely on trust and it simply is not there any more, if it ever was.

it is very likely that this will happen because indeed most countries are currently heading that way... Russia seems to be forced to be independent and although this will cost them a lot of money, in the future it will give them independence and new economic power.

Sanctions have not yet affected Russia as was expected by the Western allies. The reason they are still dependent on the Russian gas. In my opinion if Russia wants to by pass these sanctions in the future then they would go for CBDC as it negates the role of SWIFT in cross border payment. You can find a detailed information on how CBDC can remove the monopoly of USD in this article.

We could really only speculate but in most probability case that there would be some hardship on retaining their economy considering that sanctions is through left and right which even a powerful and rich country
like Russia wont able to sustain out for several years.Yes, they might have some reserves but doesnt mean that it they wont cut short.Whether they would decide to make their CBDC on their own or not.
We dont know on whats the actual plans that they do have in mind on sustaining theirselves on these hard times.

They could if they wanted, but there isn't an incentive for anyone to adopt a ruble based CBDC. If they want to create a system that is more immune to sanctions, would seem a whole lot easier just for people to adopt Bitcoin instead. Perhaps I'm being shortsighted - if the ruble is increasingly becoming worthless, digitalizing the currency serves no purpose. It's not as if ruble is a reserve currency. CBDC's just give more central authority to the major banks. Problem with the current sanctions is that their economy and assets are being frozen, a CBDC won't fix any of this.

Those sanctions are forcing Russia to create a new platform that can benefit them, they left Russia with no choice so in order for them to survive, they should innovate and that CBDC are more possible to happen. Russian economy will feel those sanctions in the coming years, many countries are already cutting ties with Russia and that’s very crucial for them. Their army can’t feed their own people if ever, and most probably more wars will happen in the coming years if they failed to survive on those sanctions. In 5 years time, we might see Russian economy to slowly recover again, we’ll see this based on their next move with Ukraine’s war.

Ever since the US and its allies imposed economic sanctions on Russia, the country's been going downhill at a fast pace. Putin will have no choice but to look for other ways to help sustain the economy. He can either seek the help of China, back the Ruble with the value of a Bitcoin, or simply order Russia's Central Bank to create the new "digital Ruble". I think Putin will take the latter option in order to become impervious from sanctions in the long term. A digital Ruble living on its own blockchain network would be truly unstoppable. If other countries wanted to bring down Russia's economy, they would need to shut down the entire Internet to become successful (something that's largely impossible). Imagine if the new digital Ruble is launched as a sidechain to the main Bitcoin blockchain. It'll be as secure and censorship-resistant as Bitcoin is, greatly undermining the US Dollar's influence in the mainstream world.

Do you think economic sanctions will force Russia to create a CBDC of its own? If not, why? How do you think Russia's economy will fare in the next 5-10 years? Your input will be greatly appreciated. Thank you.