Rosbank, one of Russia’s largest banks, is reportedly venturing into cryptocurrencies to facilitate cross-border payments.
A spokesperson from the bank mentioned that Rosbank is currently trying out a new system by conducting trial transactions with both business and individual customers.
Vedemosti, the media outlet that first reported this news on June 2, reached out to 50 major banks to inquire if there were any other similar services available. This service would be the first of its sort in the industry, according to the outlet’s lack of response.
Rosbank Partners with B-Crypto
In conjunction with local cryptocurrency company B-Crypto, Rosbank announced a scheme in which B-Crypto will function as a middleman. That implies buying cryptocurrencies overseas on behalf of importers and then transferring the digital assets to foreign suppliers.
While B-Crypto specializes in facilitating international payments using digital currencies, the bank has already started pilot transactions with corporate and private clients.
Through this pilot platform, businesses can utilize cryptocurrencies to make payments for imported goods and services, provided they have completed the necessary know-your-customer (KYC) procedures.
Notably, sellers must submit invoices in cryptocurrency instead of conventional fiat currencies. Instead of directly purchasing cryptocurrencies, participating businesses follow a different approach.
They deposit fiat money into a specific Rosbank account, which is then transferred to B-Crypto. The cryptocurrency company buys cryptocurrencies from supportive countries. They then transfer the acquired digital assets to designated foreign suppliers, complying with the laws of those countries and the Central Bank of Russia (CBR).
Currently, the “On Digital Financial Assets” regulation prohibits Russian citizens from accepting digital currencies as payment for goods and services. However, legislators in the State Duma are actively considering changes to create a more comprehensive legal system.
These proposed revisions aim to include cryptocurrencies and establish “experimental legal regimes” to regulate cryptocurrency transactions.
Interestingly, just over a week ago in late May, Russian MPs reportedly abandoned their plans for a government-backed cryptocurrency platform, as reported by the local newspaper Izvestia.
Instead, the Russian central bank has opted to establish a legal framework that empowers private companies to establish their own cryptocurrency trading platforms under its supervision.
Russia’s response to the revelation is uncertain, but this development suggests a positive change in the county’s stance in cryptocurrencies.
