Russian Banks Want to Join the Central Bank’s Crypto Project

Published on October 18, 2024
By: Karin Interfector
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As Izvestia reports, several Russian banks are keen to join the Central Bank’s upcoming crypto project. Moscow is seeking ways to sidestep Western sanctions, and the government sees digital tokens as a new channel for trade with partners like Iran, Syria, and North Korea, who also want to avoid these restrictions.

Anatoly Kozlachkov, head of the Association of Russian Banks (ABR), is urging the government to set clear guidelines for banks wishing to trade in crypto assets.

“If the Russian authorities let companies trade in crypto, then we need to understand what will happen to their balance sheets. For example, if banks are allowed to trade crypto, it will be necessary to draw up rules on how these assets should be stored. We will also need to know how much crypto companies are allowed to hold compared to other assets. And we will need to know how it can be sold, and so on. This will help us eliminate all risks”.

Several banks in Russia have launched their virtual platforms for trading digital assets. Among them, Sberbank stands out by offering investment options based on NFTs.

In September, a project was announced to legalize Bitcoin mining in Russia, scheduled to take effect next November. The goal is to enable companies registered in a state database to operate without restrictions.

But back to the main topic—what is the crypto project the Central Bank of Russia is developing? This initiative will allow a select group of companies to make payments and trade goods and services using Bitcoin (BTC) and other digital tokens. While the general objectives have been shared, the specifics of how these companies will buy and sell cryptocurrencies are still unclear.

“Russians may be allowed to trade cryptocurrencies based on qualified investor standards, or new, stricter criteria could be introduced. People need to realize that digital currencies can be so volatile that their assets might lose value overnight”.

–Anatoly Kozlachkov.        

Since the conflict in Ukraine started, Russia has faced more than 16,500 international sanctions that have severely impacted its economy. Although the country has tried to reduce its dependence on the dollar and euro, it has found it hard to escape these financial restrictions. Major sanctions include freezing half of its foreign exchange reserves, worth €300 billion, and excluding several Russian banks from the SWIFT system.

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