Russia to Use Digital Ruble for Remittances with China: Bypassing Sanctions?
In the aftermath of its aggression against Ukraine, Russia is intensifying plans to use its central bank digital currency (CBDC), the digital ruble, in the country’s trade. This initiative gains momentum as Russia seeks alternative payment solutions in the face of international sanctions, specifically exploring the potential of the digital ruble for remittances and trade settlements with China.
Reports indicate that Russia is reportedly planning to use the digital Ruble (CBDC) in mutual international deals with China. According to reports, the country’s process of unveiling its digital ruble is progressing rapidly, with key milestones already achieved.
Easing Bilateral Payments with Digital Assets
The increased use of digital assets in cross-border settlements between Russia and China is easing bilateral payment issues, digital platform Qifa told Reuters, as Russia seeks to use stablecoins to bypass sanctions and make international payments. This shift towards digital solutions highlights a strategic effort to circumvent traditional financial systems and navigate the complexities of international trade amid geopolitical tensions.
China's Stance on Digital Currencies
China has banned crypto but is still exploring blockchain technology and CBDCs. While outright cryptocurrency transactions are prohibited, the country remains deeply interested in the underlying technology and the potential of CBDCs for domestic economic modernization and international trade.
Digital Ruble Rollout: Key Milestones
Before Russia can begin cross-border tests, it needs to establish the digital ruble domestically. The first phase of digital ruble pilots began in August 2025, with VTB as the initial participant. Furthermore, by 12 de sept. de 2025, major banks will have to give their clients an opportunity to conduct transactions with digital rubles, namely to open digital ruble accounts and deposit. This mandate signifies a significant step towards widespread adoption and integration of the digital ruble into the Russian financial system.
The continued development and testing, as highlighted on 27 de sept. de 2025, signal Russia's commitment to deploying the digital ruble for both domestic and international transactions. The potential for use in remittances with China is a key component of this strategy.
The Future of Russia-China Trade: Digital Ruble as a Key Player
The development and implementation of the digital ruble represent a significant strategic move by Russia to mitigate the impact of sanctions and foster stronger economic ties with China. As the digital ruble infrastructure matures, its role in facilitating cross-border payments and remittances is likely to increase, reshaping the landscape of Russia-China trade relations.