One of Russia's Largest Banks, Rosbank, to Embrace Crypto for Cross-Border Transactions
An intriguing development unfolds as Rosbank, one of Russia's largest banks, announces its plans to leverage cryptocurrency for cross-border payments. Despite facing sanctions from the U.S. Department of the Treasury last year, the bank has conducted trial transactions with corporate and individual clients.
As reported by Yahoo Finance on Wednesday (8/23/2023), the U.S. Department of the Treasury imposed sanctions on Rosbank and its owner, oligarch Vladimir Olegovich Potanin, who is recognized as Russia's wealthiest individual by Bloomberg.
Although the specific cryptocurrency to be used by the bank has not been disclosed in detail, the news reveals that Rosbank has collaborated with fintech company B-Crypto to bring this project to life. Potanin, who has amassed billions through various commodities and involvement in controversial stock lending schemes in Russia, has openly advocated for the digital economy.
In 2022, Potanin expressed his belief that token assets and central bank digital currencies would help propel his country forward. Furthermore, Russia's Deputy Finance Minister, Alexey Moiseyev, has expressed the country's interest in utilizing stablecoins for payments with "friendly nations," aiming to reduce dependence on the U.S. dollar or euro.
Russia maintains a complex regulatory framework concerning cryptocurrencies, with its central bank previously calling for a ban on Bitcoin mining and transactions, while the Ministry of Finance supports more inclusive regulations for this innovation. In fact, Russian President Vladimir Putin has even mentioned the possibility of Russia becoming a Bitcoin mining hub in the future.
