Sberbank’s Crypto Pilot: Russian Bank to Launch Cross-Border Settlements Soon

Popov said the bank is keen to use crypto for foreign economic activity “We understand the importance of using stablecoins and cryptocurrencies in foreign settlements”.

He confirmed Sberbank is working with the Central Bank to finalise the regulatory details and the pilot will be within Russia’s evolving digital assets legal framework.

https://twitter.com/ThePopeCrypto/status/1857105185522200577

Navigating Sanctions with Digital Assets

Russia’s move towards crypto settlements is partly due to the US, UK and EU sanctions. By using digital assets Sberbank will provide Russian companies with an alternative for international payments bypassing traditional banking channels. This will give Russian exporters and importers a way to continue cross-border trade despite the sanctions.

The pilot will use stablecoins or other cryptocurrencies so Russian companies can trade without using traditional financial systems which are under global scrutiny. Sberbank’s plan is to use the Central Bank’s crypto sandbox where they can test such transactions.

As Sberbank refines the pilot the broader implications for Russian economic resilience against sanctions will be watched closely.

Sberbank’s Position on Domestic Crypto Usage

Despite the pilot being for foreign transactions Sberbank CEO German Gref said using cryptocurrencies for domestic transactions in Russia is off the table. At a recent blockchain conference he said “Using cryptocurrencies for internal transactions is impossible under current law and I see no changes in the near future”.

While Sberbank is using digital assets for international transactions its stance on internal crypto use reflects the Russian government’s cautious approach to wider cryptocurrency adoption.

Gref also mentioned the digital ruble project which Russia plans to launch nationwide by 2025. Sberbank was initially not going to participate in the digital ruble pilot but has now joined the second group of banks.

The digital ruble could be used together with the crypto settlement pilot to make transactions with other countries’ digital currencies like China’s digital yuan.

Key Points:

• Crypto Pilot Launch: Sberbank will begin cross-border crypto settlements by year-end 2024.

• Sanction Strategy: Digital assets could provide an alternative to sanctions-burdened trade.

• Domestic Restrictions: Sberbank limits crypto use within Russia, focusing on cross-border activities.

As Sberbank is using cryptocurrency for cross-border trade Russia’s approach to digital finance is adapting to global pressure. This pilot will set a precedent for using crypto in sanctioned countries while domestic use is restricted.

The outcome of the pilot will impact future economic policy both in Russia and globally as governments test crypto for international trade.