It has been rumoured that one of Russia’s largest banks will soon introduce a new international payment system using cryptocurrency.
As the Russian magazine Vedomosti reported, Rosbank is reportedly already performing test transactions with individual and business customers.
Russian fintech firm B-crypto will be in charge of the technical components of the new protocol, albeit it is still being determined whose digital assets the bank would enable for international transfers.
RBC Group report states that clients must complete a KYC (know your customer) identification with both the bank and B-crypto before using the service.
According to the report’s author, Alexey Voylukov, vice president of the Association of Banks of Russia, smaller banks are the ones that are now providing crypto-focused cross-border payments. At the same time, larger institutions have yet to implement such services.
As noted by Vladimir Chistyukhin, the first deputy chairman of the Bank of Russia, cross-border payments are not expected to replace traditional international payment methods anytime soon.
To restrict Moscow’s capacity to finance its war against Ukraine, the US Department of the Treasury imposed sanctions on Rosbank and Vladimir Potanin, widely regarded as Russia’s wealthiest man and the bank’s owner, towards the end of last year.
According to senior partner at Emet Law Firm and attorney Eduard Davydov, quoted in the RBC Group story, Rosbank may be able to avoid punishment by using the cross-border payment system.
Also Read: Analyst at Bloomberg Sound the Alarm, Predicts ‘Ugly’ Times Ahead for Bitcoin and Cryptocurrencies
