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 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.