Central Bank crypto sandbox projects could begin later this year
As Moscow continues to search for token-powered ways to get around Western sanctions, Russian banks are reportedly interested in participating in the Central Bank’s crypto pilot.
Per Izvestia, “several leading credit institutions” want to test “new technologies.” Banks want to see if they can “create new” associated “products,” the outlet reported.
Anatoly Kozlachkov, the head of the Association of Russian Banks (ABR), urged the government to assist in developing regulations for banks that intend to deal with cryptocurrency.
Russian Banks: Growing Crypto-keen?
“If the Russian authorities let companies trade in [crypto], then we need to understand what will happen to their balance sheets. For example, if banks are allowed to trade crypto, it will be necessary to draw up rules on how these assets should be stored. We will also need to know how much [crypto] companies are allowed to hold compared to other assets. And we will need to know how it can be sold, and so on. This will help us eliminate all risks.”Anatoly Kozlachkov, Head of the Association of Russian Banks
Furthermore, according to Kozlachkov, these problems are “resolved in the banking sector.” “The industry already “knows how to work with risks like these,” he claimed.
A number of prominent Russian banks have previously expressed their interest in getting involved in the cryptocurrency space.
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There are numerous “digital financial assets” trading platforms that have been introduced. Hundreds of blockchain-powered investment options are already available from some of these.
Some have even started NFT trading operations, such as Sberbank. These do not, however, currently exchange tokens on the main public blockchain networks.
Additionally, some have stated that they are prepared to create platforms akin to cryptocurrency exchanges. They claim that these platforms could enable Russian businesses to use cryptocurrency as a remittance tool when trading with foreign partners.
What Is the Central Bank’s Crypto Sandbox?
Work on the Central Bank’s own sandbox has started. A limited number of Russian businesses will be able to use Bitcoin (BTC) and other tokens to purchase and sell goods and services as part of this cross-border pilot project.
It has not yet disclosed, though, how the sandbox companies plan to purchase and sell cryptocurrency.
As a “modern digital” innovation, Kozlachkov stated that cryptocurrency and related platforms “just need to be launched calmly to limit possible risks.”
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The head of the ADB continued by asserting that the same idea “applies to individuals” in the cryptocurrency industry.
“If they can meet existing criteria that qualify them as professional investors,” he said, Russians might be permitted to trade cryptocurrencies.
If this does not happen, Moscow might establish “new, more stringent, and more specialized” standards for the crypto industry.
According to Kozlachkov, cryptocurrency investors “must understand that cryptocurrencies can have such strong volatility that assets could lose all their value [at any time].”
The ADB chief came to the conclusion that regulators would have to take “an ultra-conservative approach to transactions” if the government were to “permit” cryptocurrency trading.