Central bank digital currencies (CBDCs) are anticipated to become widespread and standard for international payments within the next five years, according to Anatoly Aksakov, Chairman of the Russian State Duma’s Financial Markets Committee.

Speaking at the St. Petersburg International Economic Forum (SPIEF), Aksakov noted that currently, only a few countries have made significant progress in implementing their own digital currencies. He expressed confidence that within five years, however, this will change and CBDCs will be commonly used for international transactions.

Aksakov also mentioned that Russia could potentially start utilizing the digital ruble for international transactions by the second half of 2025, following thorough domestic testing. He emphasized the importance of broader implementation within Russia, including by legal entities, before expanding internationally, and suggested early testing of budget financing with smart contracts.

Russia has been actively developing its CBDC, the digital ruble, as part of efforts to modernize its financial system and reduce reliance on traditional banking infrastructure. Since releasing a consultation paper on the digital ruble in October 2020, the Central Bank of Russia has conducted pilot programs to explore its potential benefits and risks.

Historically seeking financial independence, particularly amidst Western sanctions, Russia aims to enhance economic sovereignty and strengthen financial transactions' security and efficiency through the digital ruble. This move also intends to mitigate the impact of foreign sanctions on its financial system.

Regarding international testing, Aksakov mentioned potential partnerships with China or Belarus. He highlighted China's progress with the digital yuan and noted technological synergy between Russia and China, facilitating the testing of digital currency settlements. Belarus, due to its friendly relations with Russia, was also cited as a possible testing partner for CBDC transactions.