Credit Moscow issued a renminbi-denominated blockchain-based bank guarantee, claiming that the product was the first in the country. Bank guarantees exceeded Rmb100m-close to $144600 at the time of launch.

According to a statement, the deal was made through the MasterCard chain blockchain platform, Russia's national blockchain network, which aims to transfer digital assets ​ between participants.

One advantage of trading online is that "beneficiaries do not have to wait for a paper version and make a separate request to the bank to confirm the authenticity of the document issued," the financial institution said. "

Bank guarantee is the financial guarantee provided by lending institutions. Through a contractual agreement, the bank agrees to assume financial responsibility for a particular transaction if the customer fails to meet its obligations. Bank guarantees are usually used in international trade transactions to ensure payment or delivery as promised.

On the MasterCard blockchain platform, a ready-made bank guarantee is displayed, agreed by the three parties. "it cannot be forged or lost," the bank said. The RMB is the currency guaranteed by the bank because the importer's contract is linked to the RMB. If payment is made under guarantee, the beneficiary will receive the Russian rouble at the exchange rate agreed by both parties.

Natalia Bahova, director of international and structured finance at MCB, points out:

"most foreign trade contracts are settled in RMB, and the demand for payment in RMB will only grow. This is a logical step for the market, and we will see more such examples in the near future. The decision will be particularly relevant to large groups of companies with many subsidiaries that regularly accept a large number of bank guarantees.

As part of the country's ongoing password development, Russia's central bank is preparing to launch its first consumer pilot of its central bank's digital currency (CBDC) on April 1, 2023. According to Cointelegraph, digital rouble trading will be carried out by 13 local banks and several merchants.

The CBDC pilot was originally planned for 2024, but was postponed to an earlier date because the Russian central bank sought an alternative to SWIFT, taking into account western economic sanctions.