Belarus Wants to Use Its CBDC to Evade Sanctions

CBDC
Last updated:
Author
Author
Tim Alper
About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Victory Square, a central square in Belarus, Minsk.
Source: christophe/Adobe

Belarus wants to accelerate the launch of its CBDC as it looks to evade US and EU-led sanctions and let its firms trade with international partners.

Per Belarus’ Ekonomicheskaya Gazeta, President Alexander Lukashenko could issue a CBDC-related verdict in the coming days. The media outlet wrote:

“A decision on the introduction of a new form of money is set to be made after a meeting that will be attended by the head of state.”

Minsk, like Moscow, has been hit with several packages of economic sanctions following the outbreak of war in Ukraine.

Trade firms have been hit especially hard. Belarusian importers and exporters are effectively frozen out of the international baking network.

But, like Moscow, Minsk has been trying to find ways around sanctions that involve dollar-free transactions.

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 media outlet called the CBDC a “mechanism” that “may appear in Belarus to allow businesses to overcome sanctions.”

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 could take place later this month after Lukashenko returns from a state visit to China.

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.

Russian politicians have similarly stated that the digital (Russian) ruble will be used in the international trade space.

However, until CBDC-powered trade becomes a reality, Belarusian traders could be forced into much cruder measures.

The same media outlet explained that the central bank recently approved a law that allows “exporters to make payments in cash” until the end of 2024.

More Articles

Price Analysis
$TRUMP Pumping Over 20% This Week: Presidential Memecoin Back for Good?
Arslan Butt
Arslan Butt
2025-02-15 15:26:50
Price Analysis
Study Predicts Bitcoin Surge to $1M by Early 2027: Is That Possible?
Arslan Butt
Arslan Butt
2025-02-15 14:45:43
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors