Central Bank of Russia Chooses XRP: A Game-Changer for Cross-Border Payments?

• The digital ruble is set to launch next year as Russia diversifies its payment industry to contend with sanctions from Western powers.
• The Bank of Russia has previously suggested that XRP could be one of the technologies it relies on for cross-border payments.

Russia is seeking to fast-track the launch of its long-awaited central bank digital currency (CBDC). Known as the digital ruble, the currency is set to launch en masse next year, and XRP might have a role to play, according to documents published by the top bank four years ago.

The Bank of Russia has been researching and developing the digital ruble for nearly three years. Speaking recently at the Black Sea resort in the city of Sochi., governor Elvira Nabiulina revealed that the bank’s research has proven that the digital ruble can work and that it expects to roll it out to the masses in 2025.

She stated:

We would like to oblige banks to process digital ruble transactions stage by stage: at first, these should be systemically important banks who are more prepared; then banks with a universal licence; followed by banks with a basic licence.

The same should be done in relation to trade and service companies [merchants]: they should start accepting digital ruble payments gradually, similarly to how that was done with non-cash transactions.

The official launch of the digital ruble would be momentous for the entire crypto industry and the rise of CBDCs. It would be the first major economy to launch its CBDC, with other industry leaders like China and the European Union still pulling their punches on the launch of their versions of CBDCs. Currently, only smaller economies like Nigeria, Jamaica and the Bahamas have launched their CBDCs.

Could XRP Play a Role in Digital Ruble?

CBDCs have been seen as rivals to crypto, especially in the movement of money instantly, cheaply, and across borders. However, for XRP, the digital ruble might work in its favour.

A document published in 2020 shows that XRP was one of the platforms the Bank of Russia considered for its digital currency.

BREAKING:

Bank of Russia Governor Elvira Nabiullina confirms the digital rouble is on track for a July 2025 launch!

According to a document about the Central of Bank of Russia they will most likely use #XRP for cross-border payments! https://t.co/vJS0GSqix2… pic.twitter.com/V7XZOEQN0S

— ???????????????????????? (@_Crypto_Barbie) October 5, 2024

Published by researchers from the Ural Federal University in Yekaterinburg, Russia, it revealed that the apex bank conducted pilots on XRP back in 2018 for cross-border settlements.

“Based on the research results, it was concluded that the Ripple platform can be considered as the basis for starting work on creating a system of cross-border settlements,” the paper said.

However, to be considered, the XRP system must be integrated into the national payments system and have a reconciliation system, have a set XRP-fiat conversion system, and “maintain correspondence directories between the addresses of the accounts of Ripple network participants and the accounts of the banks they serve in national payment systems.”

Meanwhile, XRP trades at $0.5394, gaining 1% in the past day as the trading volume surged 70% to hit $1 billion.