The trend towards cryptocurrencies is increasing
Russia plans to create two cryptocurrency exchanges as part of its strategy to counter US sanctions that restrict its access to global financial systems.
The two exchanges will be located in Moscow and St. Petersburg.
The new stablecoins will be pegged to the Chinese yuan, helping to protect international trade, especially among the BRICS countries, which include Brazil, Russia, India, China and South Africa.
To avoid fluctuations in the value of the stablecoin, it will be backed 1:1 by the Chinese yuan.
Russia’s move towards digital assets:
Russia’s announcement of the establishment of these exchanges represents a fundamental step towards the development of its cryptocurrencies.
The St. Petersburg exchange is expected to be used to support external economic activities, while the Moscow exchange may be created on the existing exchange or through a new entity launched as a pilot.
The main goal of this step is to create and use stablecoins.
These digital currencies are a financial instrument that is usually linked to the national exchange rate to maintain the stability of their value.
Russia is considering pegging its digital stablecoin to the Chinese yuan and possibly a basket of BRICS currencies, in a move aimed at boosting economic cooperation within the group.
However, integrating stablecoins into the Russian blockchain ecosystem faces significant challenges.
Oleg Ogienko, CEO of BitRiver, pointed out the difficulties of stablecoins operating as efficiently as traditional currencies, which could slow their adoption in Russia.
The platforms are expected to be launched in stages.
Initially, access will be limited to major exporters and importers, known as large corporations.
According to Mikhail Uspensky, a member of the State Duma’s Expert Council on Cryptocurrency Law, it may be difficult for small businesses and individual users to access these platforms in the early stages.
Launching a stablecoin pegged to the yuan could help Russia bypass US sanctions and reduce its reliance on the dollar.
This new financial system will enhance the role of the yuan and the ruble as major currencies in BRICS trade, which could impact the global financial system, as other countries may seek to adopt the yuan in their trade settlements.
