With sanctions at the fore, will Russia adopt the digital yuan? Well, it could be…

You may know the Society for Worldwide Interbank Financial Telecommunication as: FAST – a cross-border payment system that allows users to shop worldwide, transfer money, pay fees and more. With major financial institutions in Russia cut off from the system and the currency depreciating, some speculate that Russia could turn to China for an alternative.

Jack be agile, Jack be SWIFT

Many crypto watchers and those following the war between Russia and Ukraine may now be wondering whether it is possible for Russia to tap into China’s CBDC. The digital yuan made a modest debut at the 2022 Beijing Olympics in early February. In addition, Chinese officials reported more than $13.68 billion in digital yuan transactions. There are also reportedly more than 260 million digital yuan usersand efforts are underway to persuade – or perhaps pressure – foreign companies in China to accept digital yuan payments.

Now, analysts are keeping their eyes peeled to see if Russia will choose to adopt the digital yuan as a replacement for the SWIFT system.

There are arguments to both support and refute this idea. For example, China is deeply involved in developing not only its CBDC, but also a multiple CBDC platform with the central banks of other countries under BIS. From this perspective, it makes sense to leave Russian users on board to boost adoption of the digital yuan across borders, while helping Russians reduce their reliance on the SWIFT system.

On the other hand, China may prefer a hands-off approach when it comes to crypto links with Russia, in order to avoid attracting sanctions against his own people of companies. On top of that, China’s digital yuan is still in its infancy and may not be ready yet cross-border use casesespecially during a war.

However, crypto investors are well aware of the link as Santiment noted that “China” was among the top 10 trending keywords.

About the candlestick

For their part, crypto traders and advocates in the US are urging the government to heed this wake-up call and take steps to hedge against a future where the US dollar may not be the first choice for a global currencies.

Investment analyst and commentator Anthony Pompliano was absolutely clear that the US needed to invest in Bitcoin and its adoption. This was not necessarily to replace the dollar, but rather to adopt Bitcoin technology “bad actors.”

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