What Can Russia Learn from the Development of the Digital Yuan

The research to assess the impact of digital transformation on the financial sector of the Russian Federation and the potential of the digital ruble to minimize the impact of sanctions and overcome the crisis of expansion of bank capital. The research involved empirical, logical, and comparative analysis to fully understand the advantages and risks associated with introducing and developing a new form of fiat money in the Russian Federation. The authors revealed the features of the functioning of the two-level digital currency system of the People’s Republic of China, alongside the main advantages and weaknesses of digital currencies. Additionally, the authors formulated recommendations for developing the digital ruble based on the experience of introducing and using the digital yuan by the People’s Republic of China. A variation model of settlements with friendly countries based on digital currencies is proposed. The formulated conclusions can serve as a basis for further development of the concept of the digital ruble, which can be used by regulators and credit institutions to improve the infrastructure and design of digital currency. © 2025 Elsevier B.V., All rights reserved.