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Russia’s Sberbank To Allow Users To Issue NFTs On Its Blockchain Platform

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Russia’s Sberbank To Allow Users To Issue NFTs On Its Blockchain Platform

Recognizing existing demand for non-fungible tokens, or NFTs, one of the largest banks in Russia, Sberbank, now intends to allow users to issue them on its blockchain platform. The financial institution also plans to cooperate with art sites and galleries across the country.

Sberbank to Give Clients Opportunity to Mint NFTs

An option providing users with the chance to issue their own non-fungible tokens should appear on Sberbank’s blockchain platform in the fourth quarter of the year, the bank’s Deputy Chairman Anatoly Popov unveiled during the Eastern Economic Forum in Vladivostok.

The high-ranking executive added that the Russian banking giant plans to start cooperating on projects with art sites, galleries, and potentially sports organizations for NFT releases related to games and tournaments.

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Quoted by the crypto page of the leading Russian business news portal RBC, Popov remarked this is something new for the bank which will first make some tests. At the initial stage, the service will be limited due to the need to moderate content, he added.

Sberbank, the biggest Russian bank by assets, created its blockchain platform after it received authorization from the Central Bank of Russia to issue digital financial assets in March, this year. The platform is currently open to legal entities only, but in the last quarter of 2022, private individuals will also be granted access and allowed to issue, buy and sell digital financial assets (DFAs).

About a month later, companies were given the opportunity to issue DFAs certifying monetary claims, purchase assets issued on the platform, and also make other transactions with them, as permitted by the current Russian legislation. The law “On Digital Financial Assets” went into force in January, 2021. Moscow Exchange is preparing to list DFAs by the end of this year.

Although limited, there is demand for NFTs, Popov acknowledged while noting that Russians have been successfully placing digital assets on foreign platforms. He also pointed out that the launch of the NFTs raises many questions that need to be answered, including regarding the content represented by the tokens.

Russia is yet to comprehensively regulate cryptocurrencies as the current law applies mainly to coins that have an issuer. A new law “On Digital Currency” will be reviewed in the State Duma, the lower house of parliament, in the coming months. While most government institutions agree that the Russian ruble should remain the only legal tender in the country, calls have been mounting to legalize the use of decentralized digital currencies in foreign trade.

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Bank, banking institution, Blockchain, blockchain platform, DFAs, Digital Assets, digital financial assets, nft, NFTs, Russia, russian, Sberbank, Tokens

Do you expect other financial institutions in Russia to offer NFT services to their clients? Let us know in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons, E. O.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bank Of Russia Adds Digital Assets To Banking Chart Of Accounts

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Bank Of Russia Adds Digital Assets To Banking Chart Of Accounts

Central Bank of Russia has introduced digital assets, including the digital version of the Russian ruble, to the recently published draft of the new banking chart of accounts. In the future, financial institutions will be able to provide data about operations with these assets.

Russian Banks to Record Digital Currencies as Assets in Their Accounting Books

The Central Bank of the Russian Federation (CBR) has released the draft of the updated banking chart of accounts for next year. Starting from 2023, Russian lenders will be required to account for new types of transactions, including digital ruble flows and operations with digital financial assets (DFAs).

The monetary authority has been expanding the testing of its new central bank digital currency (CBDC) this year and hopes to pilot real-value settlements in early 2023. Authorities in Moscow are also working to more comprehensively regulate decentralized digital currencies.

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The current DFA law refers mostly to coins and tokens with an issuer but a new bill “On Digital Currency” aims to more fully cover cryptocurrencies like bitcoin. Amid sanctions imposed over an escalating war in Ukraine, Russia hopes to use both the digital ruble and crypto assets for international settlements.

Only one account has been reserved for the digital ruble while banks will have several accounts to reflect their DFAs in the sections “Acquired Digital Financial Assets” and “Issued Digital Assets,” the crypto page of the Russian business news portal RBC detailed.

Regulators explain the need for just one digital ruble account by pointing out that commercial banks will process only transfers of CBDC funds. The digital ruble will be issued by the Bank of Russia and stored in wallets at the CBR while credit institutions will act as intermediaries providing services to individuals and organizations such as executing transfers.

Russia’s central bank is actively pursuing its digital currency project with over a dozen banks now taking part in the trials of the CBDC platform. The regulator has been promoting its implementation in foreign trade while other institutions, most notably the finance ministry, want to also facilitate the employment of cryptocurrencies as a tool to circumvent Western financial restrictions.

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Account, accounts, Bank, Bank of Russia, banks, CBDC, CBR, Central Bank, chart of accounts, Crypto, crypto assets, Cryptocurrencies, Cryptocurrency, Digital Assets, Digital Currency, digital ruble, Payments, Russia, russian, Settlements

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Do you expect Russia to step up efforts to regulate digital currency payments in the coming months? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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Bank Buys Bitcoin In Kazakhstan, Country To Develop Crypto Exchange

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Bank Buys Bitcoin In Kazakhstan, Country To Develop Crypto Exchange

A financial institution and a coin trading platform in Kazakhstan have teamed up to carry out what they say is the country’s first such joint transaction for the acquisition of cryptocurrency. Meanwhile, Kazakhstan’s leadership has declared readiness to further develop crypto exchange in the nation’s financial hub.

First Banking Operation With Crypto Assets Opens Door for Legal Coin Purchases in Kazakhstan

Almaty-headquartered Eurasian Bank and the Kazakhstan-based crypto exchange Intebix have reported conducting what they presented as the first crypto-related transaction in the country involving a digital asset trading platform, a banking institution, and a customer. The deal, in which cryptocurrency was acquired with local fiat, was announced at the Digital Bridge 2022 forum.

“This precedent makes it possible for Kazakhstanis to legally purchase cryptocurrencies for tenge, while Eurasian Bank’s proprietary solution made it possible to set one of the lowest fees in the world for such a transaction,” the bank said in a press release. Intebix Exchange Director Talgat Dosanov went even further, claiming:

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This is the first cryptocurrency exchange-bank-client transaction in the entire Eurasian continent.

In May of this year, regulators approved pilot regulations permitting crypto transactions in Kazakhstan, under certain conditions. In order to participate in the project, crypto exchanges are required to obtain a license while banks need to adhere to the adopted rules. The government maintains that the framework meets international standards in terms of transaction oversight and security.

The process of buying crypto with Kazakhstani tenge was demonstrated to the country’s head of state. President Kassym-Jomart Tokayev expressed his administration’s readiness to support the further development of the project to facilitate crypto asset exchange in the Astana International Financial Center (AIFC), the Central Asian nation’s financial hub, if the trial is successful.

Kazakhstan intends to become a leading player in the field of new digital technologies, the cryptocurrency ecosystem and regulated digital mining, Tokayev emphasized. “If this financial instrument shows further demand and security, then it will certainly receive full legal recognition,” he was quoted as saying.

The pilot project at the AIFC was launched this past summer when registered crypto exchanges were allowed to open accounts with domestic banks. Two trading platforms, Intebix (operating under the Biteeu brand in the EU and Australia) and Ataix Eurasia, as well as Halyk Bank, Altyn Bank, and Eurasian Bank are participating in the tests. The pilot will run until the end of 2022.

Eurasian Bank also announced a plan to issue a crypto card this year. It will be linked to an Intebix wallet and holders will be able to pay in tenge while spending their digital coins. The banking institution is currently working out the details with the National Bank of Kazakhstan. Eurasian Bank ranks seven among Kazakhstan’s banks in terms of assets and is a leader in the retail banking market.

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AIFC, Bank, Banking, banks, Bitcoin, Crypto, crypto exchange, Cryptocurrencies, Cryptocurrency, Eurasian Bank, Exchange, Exchanges, financial hub, framework, Intebix, Kazakhstan, Kazakhstani, mining, pilot project, purchase, Regulations, rules, Transaction

Do you expect a rapid increase of crypto-fiat banking operations in Kazakhstan? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Sanctioned Russian Bank Tests In-App Operations With Digital Rubles

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Sanctioned Russian Bank Tests In-App Operations With Digital Rubles

A Russian bank, one of the country’s largest by assets, has conducted a successful trial with digital ruble transactions processed through its mobile app. The state-owned Promsvyazbank was one the institutions placed under Western sanctions earlier this year in connection with Moscow’s actions in Ukraine.

Russian Bank Experiments With Digital Ruble Transfers via Mobile Application

Promsvyazbank (PSB) is one of the first Russian lenders to join the trials of the central bank digital currency (CBDC) issued by the Bank of Russia. According to a report by the business news outlet Plus Journal, the bank has recently tested digital ruble transactions through its app for mobile devices.

To carry out the operations, participants had to pass a registration in the application and set up a digital wallet. Then, using their account, they were able to exchange regular electronic bank money for digital rubles and transfer digital cash to other clients of the bank as well as those of other banks taking part in the pilot project.

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All the information about the performed transactions was provided by the digital ruble platform operated by the Central Bank of Russia (CBR), and was immediately reflected on the balances of the users’ digital wallets in the smartphone app, the report details. The platform’s prototype was launched by the monetary authority late last year.

“PSB is one of the first banks to implement a simple and understandable technology for making transactions with digital rubles in a mobile application and successfully test it. We see great potential in this instrument, which we expect will become a new settlement standard in the Russian economy,” stated Senior Vice President Alexander Chernoshchekin, who heads the bank’s digital business unit.

The top executive added that the successful testing lays down the foundation for future operations with the digital ruble and opens up new opportunities for the Russian public and companies. Reliable and secure transfers in digital currency will be available to the population while the state will have additional tools to administer budget payments and targeted social payments, he elaborated.

The new settlement technology will help businesses solve the issue of automating all payments and internal business processes, Chernoshchekin added. Bank of Russia is responsible for the storage and accounting in the digital ruble ecosystem and CBR officials claim all payments are subject to encryption and other measures to prevent fraud.

No less than a dozen credit institutions have decided to join the testing of the digital ruble, once their systems are ready to connect to the CBDC platform, as part of the trials that started in early 2022. This past summer, Russia accelerated the schedule for the project, aiming for a full launch of its digital currency in 2024.

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Promsvyazbank is among the top 10 banks in Russia by assets and deposits. Once a private bank owned by Russian oligarchs, the brothers Dmitry and Alexei Ananyev, it was nationalized by the Russian government in 2018 and has since been recognized as a bank supporting Russia’s defense industry. It has been targeted with sanctions imposed over Russia’s military intervention in Ukraine.

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Bank, Bank of Russia, Banking, CBDC, Central Bank, Cryptocurrency, Digital Currency, digital ruble, Digital Wallet, Mobile App, operations, Promsvyazbank, PSB, Russia, russian, Test, Testing, tests, transactions, Trial, trials

Do you think Russia may introduce the digital ruble earlier than planned? Share your expectations in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Advertisement
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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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