- Russia is looking for ways to bypass the West’s sanctions
- Russian businesses urged Putin to help legalize international settlements in crypto
Rosbank has become the first major bank in Russia to launch cryptocurrencies as an option for cross-border settlements, Bitcoin.com wrote, citing a report by Russian daily Vedomosti. The service mostly targets corporate clients of the bank, who work with foreign partners.
According to a Rosbank representative, the bank is holding pilot transactions with private and corporate clients at the moment.
Central bank remains open to crypto use outside Russia
Rosbank maintains that the innovative service complies with the laws of the country and the provisions of the Central Bank of Russia (CBR). The CBR is open to the use of crypto for international settlements, as long as they are not carried out within Russian financial infrastructure. However, the central authority still opposes the free use of crypto in the country.
Crypto is a way to bypass Western sanctions
Challenged with Western sanctions over the invasion of Ukraine, Russia is looking for ways to bypass the West’s financial restrictions and reduce reliance on the US dollar. One possibility has been broader adoption of cryptocurrencies.
Russian residents aren’t allowed to accept crypto as payment for goods and services under the Act on Digital Financial Assets, but legislators are considering changes to expand the law’s coverage to include crypto and legalize crypto transactions.
Rosbank has partnered with B-crypto
The bank’s new service is supported by B-crypto, a fintech platform specializing in processing transnational settlements in digital currencies.
All payments from Russian companies to business partners abroad show up in the respective contract. The provider’s invoice must indicate the amount in crypto and the wallet address. While the bank only accepts fiat deposits, its fintech partner converts crypto and processes the payments.
Crypto is used despite the lack of a legal framework
Government officials have admitted that Russian businesses have been using crypto to settle cross-border payments although there is no clear regulatory framework. Recently, an association of Russian businesses urged President Vladimir Putin to assist in legalizing international settlements in digital assets.
