Digital Currencies in Cross-Border Payments: Use under Sanctions

The digital transformation of the world economy has updated the issues of using digital technologies in the system of cross-border payments. The key moment was the introduction of virtual currencies into monetary systems and payment turnover. The circulation of cryptocurrencies along with fiat money...

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Main Author: L. V. Krylova
Format: Article
Language:Russian
Published: Government of the Russian Federation, Financial University 2024-04-01
Series:Финансы: теория и практика
Subjects:
Online Access:https://financetp.fa.ru/jour/article/view/2818
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author L. V. Krylova
author_facet L. V. Krylova
author_sort L. V. Krylova
collection DOAJ
description The digital transformation of the world economy has updated the issues of using digital technologies in the system of cross-border payments. The key moment was the introduction of virtual currencies into monetary systems and payment turnover. The circulation of cryptocurrencies along with fiat money in the global economy has created paradoxical situations that require research both scientific, theoretical and applied context. The subject of the study is the payment functionality of digital currencies. The purpose of the study is to explore the possibility of using central bank cryptocurrencies and digital currencies for cross-border payments within the existing traditional financial system, both in the general context and with the application of sanctions restrictions that hamper international settlements in traditional methods. In the process of research, content analysis, retrospective analysis, methods of logical and comparative analysis were used. This study is one of the first to explore the possibility of using bitcoin in cross-border payments under sanctions restrictions. It is shown that the volatility of cryptocurrencies is the most important characteristic that limits their use as payment instruments, but this risk can be neutralized by using cryptocurrency as a transit instrument, as a temporary intermediary in the exchange of fiat currencies. The conclusion is made about the possibility of using cryptocurrencies as a transit instrument in the implementation of exports and imports settlements in toxic currencies of unfriendly countries, and to use the Central Bank Digital Currencies in cross-border settlements within the framework of integration and non-integration interstate associations with the participation of Russia.
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spelling doaj-art-4f3d57526bee42d5b418a90e1297e54a2025-08-20T03:21:22ZrusGovernment of the Russian Federation, Financial UniversityФинансы: теория и практика2587-56712587-70892024-04-0128210111110.26794/2587-5671-2024-28-2-101-1111135Digital Currencies in Cross-Border Payments: Use under SanctionsL. V. Krylova0Financial UniversityThe digital transformation of the world economy has updated the issues of using digital technologies in the system of cross-border payments. The key moment was the introduction of virtual currencies into monetary systems and payment turnover. The circulation of cryptocurrencies along with fiat money in the global economy has created paradoxical situations that require research both scientific, theoretical and applied context. The subject of the study is the payment functionality of digital currencies. The purpose of the study is to explore the possibility of using central bank cryptocurrencies and digital currencies for cross-border payments within the existing traditional financial system, both in the general context and with the application of sanctions restrictions that hamper international settlements in traditional methods. In the process of research, content analysis, retrospective analysis, methods of logical and comparative analysis were used. This study is one of the first to explore the possibility of using bitcoin in cross-border payments under sanctions restrictions. It is shown that the volatility of cryptocurrencies is the most important characteristic that limits their use as payment instruments, but this risk can be neutralized by using cryptocurrency as a transit instrument, as a temporary intermediary in the exchange of fiat currencies. The conclusion is made about the possibility of using cryptocurrencies as a transit instrument in the implementation of exports and imports settlements in toxic currencies of unfriendly countries, and to use the Central Bank Digital Currencies in cross-border settlements within the framework of integration and non-integration interstate associations with the participation of Russia.https://financetp.fa.ru/jour/article/view/2818cryptocurrenciesdigital currenciescbdcbitcoinfiat currenciescross-border payments
spellingShingle L. V. Krylova
Digital Currencies in Cross-Border Payments: Use under Sanctions
Финансы: теория и практика
cryptocurrencies
digital currencies
cbdc
bitcoin
fiat currencies
cross-border payments
title Digital Currencies in Cross-Border Payments: Use under Sanctions
title_full Digital Currencies in Cross-Border Payments: Use under Sanctions
title_fullStr Digital Currencies in Cross-Border Payments: Use under Sanctions
title_full_unstemmed Digital Currencies in Cross-Border Payments: Use under Sanctions
title_short Digital Currencies in Cross-Border Payments: Use under Sanctions
title_sort digital currencies in cross border payments use under sanctions
topic cryptocurrencies
digital currencies
cbdc
bitcoin
fiat currencies
cross-border payments
url https://financetp.fa.ru/jour/article/view/2818
work_keys_str_mv AT lvkrylova digitalcurrenciesincrossborderpaymentsuseundersanctions