Komal Joshi · Oct 21, 2020 . 6min read
Russia’s Sberbank to launch stablecoin with the advancement of new law
Russia's largest bank, Sberbank, has announced plans to launch a stablecoin backed by the Ruble after new laws were passed last week regarding crypto.
By Shilika · Aug 5, 2020 . 4min read
Sberbank, the largest bank in Russia, has announced plans to introduce its own stablecoin. The coin will maintain its value 1:1 with the Russian Ruble. Sberbank executive, Sergey Popov confirmed the news to Russian media yesterday.
“We probably may issue a stablecoin on the basis of the law that has been adopted recently. As we can peg this stablecoin to the Ruble, this token could become a basis or an instrument for settlements involving other digital financial assets.”
The stablecoin will adhere to the new laws created last week. As we have already reported, Putin signed a bill that establishes Russia’s stance on cryptocurrencies. According to the law, Russians can own cryptocurrency but can not use the same for transactional purposes. The assets will be taxable as well. On the other hand, Russians can use digital assets to make purchases. The law makes clear distinctions between cryptocurrencies and digital assets.
Sberbank keen on venturing into Crypto
Sberbank has been looking into cryptocurrencies and the digital asset space for a while now. A local Russian news media reported back in May that the bank had invested more than $100 million on 5000 ATMs. These ATM’s run on the blockchain and are capable of mining cryptocurrencies.
The Russian bank had also applied blockchain to repurchase agreements (repo). This is when an agency sells government securities to individuals on an overnight basis and repurchases them at a slightly higher price. Central Banks do this to raise short term capital.
Sberbank had to halt its crypto-related activities as it was unclear what the Russian government’s stance was. However, with the signing into law of the new bill, the bank has a clearer understanding of its do’s and dont’s. Stablecoins are very much within the limits of the law, as their value is tied to the Russian Ruble. Thus the government can control it.