Russia’s Biggest Bank Sberbank Unveils Crypto Plans to Follow Upcoming Regulation

By December 2, 2020 No Comments

The largest bank in Russia, the state-owned Sberbank, has reportedly unveiled its crypto plans as the country is set to begin regulating the industry in January. Sberbank’s CEO says the bank may issue its own cryptocurrency in collaboration with JPMorgan.

Sberbank’s Crypto Plans and Sbercoin

The CEO of Sberbank, Herman Gref, unveiled on Monday his bank’s plans for when the country’s upcoming crypto regulation takes effect.

Gref explained that the law “On digital financial assets” will enter into force in Russia on Jan. 1. It provides a legal definition for digital assets and legitimizes cryptocurrency in Russia. A separate bill, “On digital currency,” which is still under consideration by the Duma, will provide a regulatory framework for cryptocurrency. Gref was quoted as saying:

From January 1, the law comes into force, we want to bring to the market our new blockchain platform, which will provide services for the purchase of digital financial assets.

In addition, Reuters reported Tuesday that Sberbank is considering issuing its own cryptocurrency called “sbercoin” and may team up with JPMorgan to work on the project next year. JPMorgan recently launched the JPM Coin. Gref explained that Sberbank will work on its cryptocurrency at the same time as the Bank of Russia works on a central bank digital currency (CBDC), the digital ruble.

Sberbank is the largest bank in Russia, Central and Eastern Europe. Its Russian network features 11 regional banks with 14,200 branches in 83 regions. The bank has a worldwide presence in 18 countries. The Russian Federation represented by the Ministry of Finance “owns 50% plus one voting stake in Sberbank’s authorized capital (or 52.23% of all voting Sberbank shares),” the bank’s website details.

What do you think about Sberbank’s crypto plans? Let us know in the comments section below.

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