Cryptocurrency

After legalization of Bitcoin in Russia, the largest state owned bank readies his stablecoin


Key facts:

The Sbercoin would be tied to the ruble and oriented to the corporate customers.

Of completion of the project, would be in operation by 2021.

A week after the president of Russia, Vladimir Putin, signed the Act on Financial Assets Digital (DFA), the largest bank in the state of the country now prepares your stablecoin. The Sberbank is ready for the issuance of Sbercoin that it would be oriented to the corporate customers of the institution.

The new criptoactivo would be tied to the currency fiat local, the ruble, and could be issued at some point in the next year, according to bank officials cited by local media. One of them was Sergei Popov, who stressed that the new legislation opens the doors for the design and implementation of a stablecoin for the liquidation of financial assets.

“We are likely to issue, on the basis of the law, which was adopted, a token that we can tie to the ruble, a token as appropriate that can be a basis or a tool for the agreements of some other financial assets for digital,” noted Popov who serves as director of the division of business transactions in Sberbank.

Local media reported that the largest bank in Russian state continuously explores new developments that arise within the financial sector, and that the stablecoins are one of them. According to Antonina Levashenko, director of the Russian Centre for Competition and Analysis of Standards, the Sberbank is beginning to build its own ecosystem, and is looking beyond traditional financial services.

The state bank Russian Sberbank may issue its stablecoin in 2021. Source: Roman Balabin/Wikipedia.

To the official, the fact that the largest state-owned banks to show interest in issuing a stablecoin private evidence the desire “to accelerate transactions and reduce costs.” Some elements that could consolidate the project are the infrastructure of the bank and the liquidity that handles.

Central banks, stablecoins and adoption

The adoption, which would assume the bank is going to tune with the global trend of central banks or financial institutions that state that they are evaluating or developing stablecoins. For the first case, the digital currencies of central banks (CDBC) are topics that are kept on the agenda for at least 17 governments across the world. Some choose to establish systems with records distributed blockchains, while others do not include.

In the technical aspect, the project of Sberbank would be framed in Fabric of Hyperledger, a project blockchain cutting corporate promoted by the Linux Foundation, and would use its network of nodes, hosted in the cloud. In addition, the system would be open to any company to join.

It is worth mentioning that, even though Russia legalized to bitcoin with the DFA, banned its use as a method of payment for the acquisition of goods or services. The law looks to the cryptocurrencies as a set of electronic data that can be adaptable to the investment.

The Sberbank has a long history of rapprochement with the cryptocurrencies and the call technology of accounting distributed (DLT). Breaking News reported in December 2017 that the bank had executed its first transaction with blockchain in the banking industry of russia.

The institution also reported in January 2018 and is proposing to market cryptocurrencies in Switzerland, due to the restrictions of the Russian government. At that time the plan was to use the subsidiary Sberbank Switzerland AG to perform the operations.

About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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