See More

Russian Central Bank Grants License to Sberbank to Issue Digital Assets

2 mins
Updated by Andrew Rossow
Join our Trading Community on Telegram

In Brief

  • Russia’s central bank has issued a license to issue and exchange digital financial assets to major lender Sberbank.
  • Russian banks must now seek new opportunities to mitigate the effects of Western sanctions in the ongoing Ukraine conflict.
  • Prior to the invasion, Russian authorities had come to an impasse as to how to officially approach cryptocurrencies.
  • promo

Russia’s central bank granted the country’s biggest lender Sberbank a license to begin issuing digital assets.

Sberbank, the country’s largest retail bank applied for a license back in January with Russia’s central bank to issue its own digital token for corporate clients. In wake of the Ukraine conflict, Sberbank also said it would be pulling out of European markets, as it is currently sanctioned by both the U.S. and European Union.

Although the Bank of Russia has been persistently in favor of banning cryptocurrency, Russian banks must now seek new opportunities to mitigate the effects of Western sanctions.

Sberbank along with financial ecosystem Lighthouse were among the two companies listed on the central bank’s register, giving them permission to issue digital assets and exchange them on their platforms. Blockchain platform Atomyze Russia became the first firm to receive approval to exchange digital assets legally in early February.

Sberbank highlighted how blockchain technology would guarantee the safety of transactions. The bank said it would also allow companies to issue their own digital assets, as well as purchase others within its system. 

J.P. Morgan partnership

Sberbank CEO German Gref had said in 2020 the bank would partner with J.P. Morgan to prepare its own cryptocurrency, which has yet to launch. Sberbank had been actively preparing to launch its Sbercoin in February, prior to the invasion and ensuing sanctions, according to Reuters.

Unprecedented Western sanctions have struck at the heart of Russia’s financial system following its invasion of Ukraine in late February. As Russia’s largest bank, Sberbank shares dropped a staggering 74%, in what has become the biggest slump it has ever experienced.

While many companies have severed ties with Russia, it remains unclear how sanctions and the crisis have affected Sberbank’s partnership with J.P. Morgan or Sbercoin’s launch.

Crypto clash

Prior to the invasion, Russian authorities had come to an impasse as to how to officially approach cryptocurrencies.

While the finance ministry sought to regulate the crypto industry in Russia, submitting proposals, the central bank stuck to its gun, insisting that cryptocurrencies could threaten Russia’s financial stability, citizens’ wellbeing and its monetary policy sovereignty.

What do you think about this subject? Write to us and tell us!

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

photo_Nick.jpg
Nicholas Pongratz
Nick is a data scientist who teaches economics and communication in Budapest, Hungary, where he received a BA in Political Science and Economics and an MSc in Business Analytics from CEU. He has been writing about cryptocurrency and blockchain technology since 2018, and is intrigued by its potential economic and political usage.
READ FULL BIO
Sponsored
Sponsored