Belarus has proposed using its own digital currency, the Belarusian Ruble, to circumvent US and European Union sanctions. The goal would be to make payments between individuals and businesses in Belarus easier and quicker, as well as to avoid external financial controls.
The idea is that a central bank digital currency (CBDC) could allow payments to take place without going through international payment networks, where payments could be blocked. The proposed CBDC would use mobile phones and be backed 1:1 to the Belarusian Ruble, allowing for seamless conversion between the two.
The proposal suggests that the CBDC could be used to make payments to countries with which Belarus has trade relationships, such as China, India, and Russia, but would not be tied to international banking networks, allowing it to go around international sanctions.
While Belarus has not officially announced a timeline for the launch of its CBDC, the proposal has been sent to various international organizations, including the IMF, for approval. It is not yet clear how the US and EU would react to this idea, but they have previously expressed concerns about the use of digital currencies to dodge economic sanctions.
