The digital yuan, or central bank of China (CBDC) digital currency, would potentially enter the talks and agreements between Russian President Vladimir Putin and Xi Jinping, his Chinese counterpart.
The world is waiting for what could happen in Moscow, where today the second meeting of the three that will be held by the leaders of China and Russia.
Both countries are determined to deepen strategic cooperation, so concerns are now centered on what this could mean for the Ukraine conflict and for the global economy.
Anyway, Xi Jinping published yesterday a letter in the Russian media, which from the official point of view seems to be an attempt to set things straight.
The publication, v Chinese President emphasizes two-way trade, investment and economic cooperation which has enabled the two countries to establish a model that continues to bear fruit.
In this sense, Xi Jinping assures that the cooperation is progressing steadily.
“Our collaboration in scientific and technological innovation, Cross-border e-commerce and other emerging areas are showing strong momentum‘ adds the ruler of China.
China and Russia are much more than allies
Xi Jinping’s visit to Moscow is seen by international analyst Angela Diffley as a major morale boost for Putin.
It comes after the International Criminal Court issued an order alleging that Putin was responsible for war crimes in the illegal deportation of children from Ukraine to Russia.
This warrant means that Putin cannot visit more than 120 countries around the world.
But after that there is this encounter that sends out a message from here boundless partnership takes place, stressed the analyst for the medium France 24.
“Russia is increasingly dependent on China for supplies, among other things, of microchips for computers and industrial machinery. And that makes a big difference, because after the US sanctions, all supplies to this country, which has found respite in China, have been halted.”
Angela Diffley, international analyst.
He added that on the other hand Russia supplies oil to China to boost its economy.
“All of this shows that they both care about each other,” Diffley said.
As Russia sells energy to China, it also imports more Chinese goods, including machinery, electronics, base metals, vehicles, ships and planes.
As a matter of fact, China-Russia trade exceeded $190 billion last yearas Xi Jinping points out in his letter.
The digital yuan, a new ally of Russia?
As CriptoNoticias reports, a year ago Russian banks were cut off from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), the infrastructure to which most of the world’s banks are connected.
At the time, some analysts said that a sharp turn towards cryptocurrencies would not do much for Russia to evade sanctions.
The main reason is the radical transparency with which they are treated Transactions on public blockchainslike bitcoin.
However, the Chinese yuan later filled the void as most trade is between the two nations billed in Chinese currency. Because the West is sanctioning Russia’s access to the dollar and the euro, as Russian economist Alexandra Prokopenko explains.
Considering that this dependency will increase, it is logical to think that both nations They can adopt the digital yuan as the currency they need for trading.
Today, China is demanding more political allegiance for helping keep Putin’s regime afloat.
In the near future, as part of your political concessions, you could also make other demands, and one of those demands could be Introduction of the digital yuan for bilateral trade.
So, to the extent that China consumes most of Russia’s exports, it must also provide a monetary infrastructure.
Then the Russian financial system will be fully yuanized and that way China’s national currency would become a real alternative to the dollar.