After the departure plan of MasterCard and Visa from Russia-based regional operations, Russia caught the hand of the Chinese payment system.
Today is 12th day of the Ukraine vs Russia war. The latest reports are informing that Russia decided to stop its invasions on Ukraine for now, however not enough information has been leaked yet but surely it will be better for Ukraine and also for Russia. But due to its past 11 days of invasions on Ukraine, Russia is facing financial sanctions.
On 5 March, Two giant card payment network firm Visa & MasterCard decided to suspend the support for the Russian institution-issued cards or related to Russian citizens cards, to slow down the war efforts between these two countries.
According to reports, these card payment services will be suspended on 10 March, so Russia is preparing against such critical situations in advance. It will use the chinese payment network processor company Unionpay.
Right now Unionpay is providing its payment services in the whole world’s 180 countries including the USA where 80% of merchants are using Unionpay payment services via its sign & verification system.
Crypto & blockchain inclined Sber Bank is also working to issue Uniopay backed cards and also largest private bank Alfa-Bank is reportedly working on UnionPay cards. These things are showing that leading financial systems are already working on future possible problems.
Chinese CBDC potential may come into existence
The whole world know very well that China is in its final phase of Chinese CBDC (Digital Yuan) Rollups and we can consider it as a fully complete project.
If under any situation, this situation will continue and also sanctions will remain active on Russia then in that situation Russia will try to adopt the advanced global payment system or more likely to Chinese Digital Yuan.
Reportedly China’s CBDC integrated platform is working to integrate the bank accounts of every country to allow any person in the world to exchange his currency into another with the help of Chinese CBDC.
However possibilities of such things are very rare but surely it will force Russia to develop its own Digital Ruble more fastly and also needed to create a global financial system so that it can step with future payment systems, which remain away from any global threat/legal order.