Rosbank has become the first large Russian bank to offer clients an option to use cryptocurrencies in international settlements. The solution, provided in tandem with a Russian fintech, is mostly intended to meet the needs of businesses working with foreign partners.
Russian Companies to Be Able to Pay Suppliers With Cryptocurrency Through Rosbank
One of Russia’s systemically important banks, Rosbank, is launching a solution for cross-border settlements in cryptocurrency, the business daily Vedomosti reported. According to a representative of the financial institution, it is now conducting pilot transactions with corporate and private clients.
The bank maintains that the service, which is the first of its kind in the sector, is compliant with current Russian legislation and the requirements of the Central Bank of Russia (CBR). The latter remains opposed to the free circulation of cryptocurrencies in the country but has been open to allowing their use in cross-border transactions as long as they are carried out outside of the Russian financial infrastructure.
Тhe law “On Digital Financial Assets” prohibits Russian residents from accepting digital currencies as payment for goods and services but lawmakers in the State Duma are considering amendments expanding the legal framework’s coverage to include cryptocurrencies and legalize crypto transactions under “experimental legal regimes.” Rosbank’s new service is supported by the fintech platform B-crypto, which specializes in processing cross-border settlements in digital currencies. When a Russian company chooses to pay a foreign counterpart with cryptocurrency, this must be reflected in their contract and the invoice issued by the supplier must indicate a wallet address and the crypto amount. Rosbank accepts fiat deposits while B-crypto is responsible for crypto conversion and payment processing.
Faced with unprecedented Western sanctions over the invasion of Ukraine, the Russian government and businesses have been exploring ways to circumvent financial restrictions imposed by the West, including through wider use of national currencies and cryptocurrencies.
A body representing Russian businesses recently urged President Putin to help with legalizing crypto settlements in foreign trade. Earlier, officials in Moscow admitted that Russian companies are already using crypto in cross-border payments despite the lack of comprehensive regulation.
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