Sberbank has applied for permission from the central bank of the country to introduce a blockchain-based network to allow the bank to launch its own digital currency.
Sberbank, Russia’s largest state-owned lender, has applied to the central bank of the country to obtain permission to introduce a blockchain-based network that will enable the bank to launch its own digital currency. The application was submitted in early January, as stated by the local news outlet, Interfax. If the bank gets the green light from the regulator without any obstacles, the open network is expected to be released by spring. Russia’s central bank is still considering digital currency exploration.
For such a fiat currency, the bank is able to function.
“Technologically, the bank is ready to work with such fiat currency, we have tested it inside and saw that this solution works,” Sberbank’s deputy chairman, Anatoly Popov, said.
The registration process takes 45 days, and within the timeline the regulator will either accept the submission or inquire for feedback. The Russian bank’s leap into the blockchain did not come as a surprise, as its proposals for a digital currency were already announced last year. Sberbank was recently claimed to have worked with JPMorgan to play with its digital currency. Nevertheless, the specifics and preliminary timetable on that pilot was not clear then.
Russia strengthens its crypto laws.
There is one more issue that has not yet been fully resolved – the issue of taxation of digital financial assets (IF), but we hope that it will become clearer. The simplest use of savings – This is a digital bill, a Sberbank manager noted. The cryptocurrency laws in Russia are taking shape as the country legally started to see them as property. However, the government wants to curb the retail distribution of crypto and also wants to track citizens’ digital currency holdings.