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Belarus is looking to speed up the launch of its CBDC to navigate around US and EU-led sanctions and facilitate international trade for its firms.
According to Belarus’ Ekonomicheskaya Gazeta, President Alexander Lukashenko is expected to make a decision pertaining to the CBDC in the next few days after an official meeting.
The move comes at a time when Belarus, along with Moscow, is grappling with economic sanctions due to the war in Ukraine.
Firms in Belarus have been particularly impacted, with limited access to international banking networks, effectively freezing them out of global trade.
The country is working to bypass these sanctions by seeking dollar-free transaction options and is looking to implement a digital ruble to facilitate trade.
Belarus Preparing to Use Digital Ruble to Dodge Sanctions
Belarusian government officials have been exploring CBDC issuance for several years.
However, the nation stepped up its plans for a digital Belarusian ruble in August this year, announcing plans for “real-world” testing.
Tellingly, the National Bank of the Republic of Belarus (NBRB) began talking up the digital BYN’s cross-border credentials from the outset.
Dmitry Kalechits, the NRBR Deputy Chairman, called the CBDC a “most significant large-scale project.”
Kalechits also spoke about the coin’s potential “use at the cross-border level.”
The introduction of this CBDC is seen as a viable mechanism to allow businesses in Belarus to bypass sanctions and participate in cross-border transactions.
The NRBR reiterated its claims from earlier this year, stating that a digital Belarusian ruble “will be of greatest interest in the cross-border payments space.”
The meeting to make this decision could take place later this month after Lukashenko returns from a state visit to China.
Belarusian President Alexander Lukashenko was welcomed by Chinese President Xi Jinping in Beijing on Monday.
Lukashenko has become increasingly isolated following a crackdown on political opponents and his support for Russia in its war on Ukraine. https://t.co/D2svzCiImu pic.twitter.com/SoEJQr4nNR
— Voice of America (@VOANews) December 5, 2023
Lukashenko met Chinese President Xi Jinping in Beijing, where the latter decried “external interference” in Belarus’ internal affairs.
Per the Global Times, Xi applauded Minsk’s attempt to “look East,” and promised to provide “strategic support.”
The developments come at a time when China is also testing its own CBDC’s cross-border capabilities.
Minsk’s long-standing ally, Moscow, has also sped up its own CBDC pilots, with a nationwide launch slated for 2025.
🇷🇺 Digital Ruble Will Spark Russia’s ‘Biggest Monetary Reforms Since the 1990s’
The launch of the Russian digital ruble will trigger the nation’s “largest monetary reforms since the 1990s.”#CryptoNews #Russiahttps://t.co/mVy4T1M45J
— Cryptonews.com (@cryptonews) December 4,