Russia’s Biggest Bank Considers Launching its Own Stablecoin

Sberbank, a state-owned company and the largest bank in Russia, is considering the possibility of issuing its own token, according to its key executives.

Sergey Popov, Director of the transaction business at Sberbank, says that Russia’s banking giant is thinking of issuing its own stablecoin that could be pegged 1:1 to the Russian ruble, local news agency Kommersant reports on Aug. 4.

Sberbank’s stablecoin would be compliant with recently passed crypto law

According to the report, the potential stablecoin could be used for settlements involving other digital financial assets. Popov reportedly noted that Sberbank would be able to issue the token in accordance with the recently passed crypto law called “On Digital Financial Assets,” or DFA. 

The exec said:

“We probably may issue a stablecoin on the basis of the law that has been adopted recently. As we can peg this stablecoin to the ruble, this token could become a basis or an instrument for settlements involving other digital financial assets.”

Russia’s President Putin recently signs crypto bill into law

The news comes soon after Russia’s President Vladimir Putin officially signed Russia’s DFA bill into law on July 31. By signing the bill, Putin prohibited Russian residents from making payments in cryptocurrencies like Bitcoin (BTC) starting from Jan. 1, 2021. First initiated in 2018, the DFA law reportedly legalizes crypto-to-crypto exchanges, buying and selling, as well as loans in crypto.

Sberbank has apparently been waiting for the bill since 2018

Sberbank is known for its crypto-related initiatives. In May 2020, Cointelegraph reported that Sberbank was spending more than $100 million on 5,000 blockchain-enabled ATMs that are capable of mining crypto. In November 2019, Sberbank also pioneered a blockchain solution for repurchase agreements, also known as repo.

In May 2019, Sberbank had to suspend a crypto initiative due to the negative stance on Blockchain assets held by the central bank.