Cryptocurrencies become the focus of countries' attention

Amid growing geopolitical uncertainty, the US has stepped up its ban on the Digital Yuan in app stores in the country, and Russia is also considering the use of cryptocurrencies in international trade.

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US says no to Digital Yuan

Digital Yuan (e-CNY) - a centralized digital currency issued by China is seen to have stirred up the world's two leading economies. This time last year, politicians in the US advised their athletes not to use e-CNY during the Beijing 2022 Winter Olympics, citing concerns about espionage.

Recently, US Senators reiterated their negative stance towards China's Digital Yuan

Soon after, China's Foreign Ministry responded, by urging the US to "stop making trouble" with the digital yuan. In it, Zhao Lijian - a spokesman for the Ministry of Foreign Affairs said that the US really does not fully understand about digital currencies.

Recently, US Senators have also reiterated their negative stance towards this new Chinese currency product. Notably, they introduced a bill to restrict the use of CBDCs by China in app stores in the US, called the "Exclusive Digital Currency Act", which should be approved by the Senate, the House of Representatives and the US Senate. Senate and US President Joe Biden approved before taking effect.

The senators explained that the term "app store" also refers to "publicly available websites, software applications, or other electronic services that distribute applications from third-party developers three for users of computers, mobile devices or any other all-in-one computing device”.

Senator Cotton emphasized that the move is urgent because otherwise China could use its digital currency to "control and track" whoever uses it. "We cannot give China that opportunity, the United States should reject China's attempt to influence our economy at the most basic level," he added.

Another Senator expressed: “It makes no sense to tie yourself to the digital currency of a regime that wants to replace us in the world. This would be a huge financial and supervisory risk that the United States cannot afford.”

Earlier this year, Richard Turrin, a Financial Technology Consultant at CNBC, said that the digital renminbi could weaken USD dominance in the next 10 years. Specifically, he suggested that the e-CNY could replace its rival as the currency of choice in international trade arrangements.

In his view, the US should catch up with China by launching tests for a potential digital dollar. Otherwise, many countries will be less dependent on the greenback in the years to come.

Russia will use cryptocurrencies in international trade

It can be seen that the geopolitical instability occurred, causing many countries to start thinking about the story of protecting financial security and preventing risks in case of bad developments, of which Russia is an example that makes China must be more vigilant than ever. At the same time, the Russian Ministry of Finance (Minfin) is also proposing to consider the possibility of using cryptocurrencies in international trade.

The Russian Ministry of Finance is actively discussing the use of digital currency in barter transactions, if it is recognized as property in the Russian Federation.

According to Interfax news agency, Ivan Chebeskov, director of the Ministry's Financial Policy Department, said that the possibility of using cryptocurrencies is being considered by the Russian Finance Ministry because of its accessibility to the country's traditional payment channels. This is limited. “Minfin is actively discussing the use of digital currency in barter transactions, if it is recognized as property in the Russian Federation. This is a topic that deserves attention, since Russia is limited in its ability to use traditional settlement infrastructure in its international economic activity,” Ivan Chebeskov said at a conference. herd.

His comments come as Russian authorities are preparing to pass a new law "On Digital Currency" that could legalize this type of cross-border payments and other cryptocurrency transactions.

To date, Moscow is still struggling to cope with increasing US and Western sanctions over its military intervention in Ukraine, which has severely limited its access to global finance. of the country and was looking to replace the US dollar and Euro in international payments, even before the conflict broke out in February 2022.

In mid-April, the President of the Russian Chamber of Commerce Sergey Katyrin proposed the use of cryptocurrencies in settlements with African countries, and in late March, the head of the Parliamentary Energy Committee Pavel Zavalny says that Russia may start accepting Bitcoin for its gas exports in the future.