Russia and India finalized the creation of an international payment system in rupees and rubles in order to provide service to bilateral trade with a platform similar to the Society for Worldwide Interbank Financial Telecommunications, SWIFT, which is not available to Russia as a consequence of the sanctions.

According to specialized sources, “India offered a series of transaction platforms of this type, of which the Russian authorities have accepted a specific network protocol” that will allow smooth transfers of import or export documents for operations in rupees. and rubles.

The new platform will be installed at the headquarters of the Reserve Bank of India (RBI) and the Russian state bank (VEB) and its implementation is expected to be finalized during the next week. In order to guarantee the proper functioning of both financial institutions they are working on a regulatory framework to carry out mutual transactions.

The system provides for transactions to be “settled through the rupiah debt account, which VEB will hold at the RBI. If a Russian importing company receives a shipment from an Indian exporter, VEB (assuming it is the importer’s bank) will receive from the local importer the rubles or dollars equivalent to the value of the business. It will then inform the RBI to debit the same amount of rupees from the rupees debt account and credit it to the Indian bank of the exporter.”

Expanding the market and business relationships

The sanctions imposed on Russia can benefit India’s economy by allowing it to expand the amount of exports and expand in the Russian market. During 2021 this country exported some 3,300 million dollars in pharmaceutical products, tea and coffee.

While India acquired from the Russians some 6.9 billion dollars in weapons, mineral resources, fertilizers, metals, diamonds and other precious stones, as well as oil. Some Indian media outlets recently noted “that the country’s leading refiner, Indian Oil, has increased purchases of Russian crude over the past month.”

India has been on the Russian market for a long time and participates in the state Farma program, which is dedicated to the development of the pharmaceutical and medical industry in Russia. The Russian ambassador in New Delhi, Denis Alipov, stressed that pharmaceutical companies can replace Western manufacturers that have left the market as a result of sanctions. “There are joint ventures for drug manufacturing in Russia and I think there will be more opportunities in this niche,” the ambassador noted.

M. Rodríguez

Source: actualidad.rt.com

La entrada Russia and India create payment systems similar to SWIFT apareció primero en Bitfinance.

The Reserve Bank of India (RBI) will initiate the steps for the design and development of a “sovereign digital asset”. This was reported by the RBI governor, Shaktikanta Das, who admitted that they are expected to carry out the first tests of the project by the end of the year.

“I think by the end of the year we should be ready for that, maybe we would be in a position to start our free trials” and added they are extremely careful about it because “it is a completely new product, not just for RBI, but globally.”

The project aims to evaluate the CBDC in all its areas and especially in the processes related to security, as well as the feasibility, applicability and effects on the internal economic environment of the nation.

The representative of the official financial institution stressed that there is an internal debate in the institution related to the type of book that the new currency should have. They are considering to assume a centralized ledger or just to establish it in the “distributed ledger technology (DLT)”, which would allow greater participation in the system, but regardless of the decision made, the RBI will reserve absolute guardianship of the currency.

As you will recall, the government of India has taken a stance against Bitcoin and other cryptocurrencies, requesting, more than once their ban in the country. However, the government’s new strategy will be to evaluate, in the remainder of the year, the “media impact” of the new currency and its positioning in relation to other digital assets.

During 2021 the investment made in the cryptocurrency market in India increased “200 times more” compared to 2020, standing out as one of the countries with the largest number of crypto investors, located at approximately 15 million.

M. Rodríguez

Source: cripto247.com

La entrada India will work on its new CBDC apareció primero en Bitfinance.