Russian pressure on allies to develop digital bank currencies

The US Federal Reserve Has No Plans to Introduce Central Bank Digital Currency

The Chairman of the Federal Reserve, Jerome Powell, stated during his appearance before the Senate Banking Committee that the introduction of Central Bank Digital Currency (CBDC) is not planned in the near future. This means that the United States will not be joining the countries considering the issuance of digital counterparts to their traditional currencies at this time.

Rumors about Biden Administration’s Plans Spark Controversy

Despite Powell’s assurances, rumors about potential plans by the Biden administration regarding CBDCs have stirred controversy. Many critics fear that a central digital bank currency could lead to increased government supervision and reduce the financial privacy of citizens.

Hong Kong and Russia Consider Introducing Their Own Digital Currencies

Global trends in central bank digital currencies are gaining momentum. Hong Kong has launched a pilot CBDC program, while Russia, along with other BRICS countries, is analyzing the potential benefits of introducing a payment system based on digital currency.

Sandbox for Wholesale CBDC in Hong Kong

The Hong Kong Monetary Authority has announced the creation of a sandbox for its wholesale central bank digital currency (wCBDC), aimed at exploring different solutions to facilitate interbank settlements. This move could impact the development and use of central bank digital currencies in the financial sector.

Russian Plan for a CBDC-Based Payment System

The Russian Finance Minister, Anton Siluanov, has announced plans to create a payment system based on CBDC that would connect Russia and China with the other BRICS countries. The planned tests of the system, named BRICS Bridge, are currently in the preparatory phase, indicating a growing interest among countries in this solution.

Russian Pressures Allies for CBDC Development

Russia has long been pushing for widespread adoption of central bank digital currencies. In 2022, rumors surfaced suggesting the possibility of trade between Russia and China using CBDCs. The ongoing work on the BRICS Bridge system is a result of these earlier speculations and may contribute to further development of central bank digital currencies on the international stage.