In a significant move towards enhancing bilateral financial cooperation, the Central Bank of Russia has expressed its readiness to collaborate with UAE regulators in establishing a rapid payment and settlement system utilizing the digital ruble Central Bank Digital Currency (CBDC). The announcement was made by First Deputy Governor Olga Skorobogatova at the Finopolis forum.
Skorobogatova highlighted the cooperative efforts, stating, “We will work out the fast payment system and the CBDC because the colleagues are ready with the digital ruble and we are ready. If we solve the issue of client identification, then I think we will be able to build up a normal system of payments for citizens and businesses between our two countries in a year at the least.”
This initiative signifies a commitment to fostering efficient cross-border transactions, opening avenues for both individuals and businesses to leverage the benefits of the digital ruble once Know Your Customer (KYC) concerns are addressed. The collaboration aims to create a seamless and secure financial ecosystem for citizens and businesses, bridging the gap between Russia and the UAE.
The potential partnership holds promise for a robust payment system, streamlining financial interactions and promoting economic ties between the two nations. As both parties express readiness, the resolution of KYC issues emerges as a crucial step toward the realization of this ambitious endeavor.
The development follows global trends in exploring and implementing Central Bank Digital Currencies, marking a progressive stride in the evolution of financial systems. The joint efforts of the Central Bank of Russia and UAE regulators reflect a shared vision for the future of digital currencies and cross-border financial transactions.