According to the President of the Chamber of Commerce and Industry, Russia should use cryptocurrencies and CBDCs for settlement and payments with Africa.
A senior executive at Russia’s Chamber of Commerce and Industry has urged the government to allow cross-border settlements in cryptocurrencies and central bank digital currencies (CBDCs).
According to the local state-backed publication TASS, Chamber President Sergei Katyrin sent a letter to Russian Prime Minister Mikhail Mishustin outlining a series of proposals for expanding cooperation with African countries.
Katyrin reportedly advocated the use of CBDCs and cryptocurrencies for mutual settlement and payments in the letter as part of Russia’s move into Africa in the face of Western sanctions, stating:
“It seems useful to instruct the Ministry of Finance of the Russian Federation, together with the Central Bank, to ensure providing intergovernmental agreements with African states on the use of national currencies and cryptocurrencies in mutual settlements and payments.”
The executive went on to say that it is critical to establish a special export-import bank and a trust fund to support export activities in African countries’ small and medium-sized businesses.
The announcement comes as several African countries consider collaborating with Russia-linked blockchain networks.
Cameroon, the Democratic Republic of the Congo (DRC), and the Republic of the Congo issued a joint announcement on Monday about their plans to implement TON, the Telegram-initiated layer-1 proof-of-stake blockchain. According to reports, the DRC is also considering launching a new national stable coin based on the TON blockchain.
Despite the fact that Telegram is no longer formally involved in the TON blockchain after abandoning the project in May 2020, Telegram co-founder Pavel Durov expressed public support for TON and potential integrations on the Telegram messenger in late 2021.
“These countries will each undertake a phased transition to adopting cryptocurrency as a central pillar of their economic structures,” the announcement stated.
After prohibiting residents from making payments in cryptocurrencies such as Bitcoin (BTC) in early 2021, Russia is still working on a federal crypto bill. The Bank of Russia officially launched the digital ruble trial in mid-February, successfully completing the first CBDC transfers among citizens.
A number of African countries have also made progress with CBDC development, with Kenya and the Republic of South Africa reporting some progress earlier this year. Ghana was working last year to develop offline capabilities for its potential CBDC in order to promote its use across all sectors of society.
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