Ethereum

Bank

World

Bitcoin

As Russia’s pursuit of tokenized ways to sidestep sanctions continues, Moscow’s Central Bank crypto pilot may have garnered interest from Russian banks. As economic stress rises, many banks want to test blockchain-inspired financial products and request clarity from the government protection department. These broad reasons could mean a progressive step ahead for Russia in embracing international relations on digital assets.&nbsp; This pilot might just be the first step in further illuminating cryptocurrency adoption around their financial system. 
<h2 id="img-loading-lazy-decoding-async-class-alignnone-size-full-wp-image-23880-src-https-www-turkishnyradio-com-wp-content-uploads-2024-10-whatsapp-gif-2024-10-17-at-09-08-15-gif-alt-whatsapp-gif-2024-10-17-at-09-08-15-width-736-height-96-title-russian-banks-eye-crypto-to-bypass-western-sanctions-51"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-23880" src="https://www.turkishnyradio.com/wp-content/uploads/2024/10/WhatsApp-GIF-2024-10-17-at-09.08.15.gif" alt="WhatsApp GIF 2024 10 17 at 09.08.15" width="736" height="96" title="Russian Banks Eye Crypto to Bypass Western Sanctions 51"></h2> 
<h2 id="b-russian-banks-targets-new-crypto-products-b">Russian Banks Targets New Crypto-Products</h2> 
As Izvestia recently reported, the leading credit organizations in Russia now think about how to begin subjecting their business to&nbsp; creating new crypto-related products. Anatoly Kozlachkov, who is the leader of the Association of Russian Banks (ABR) believes that if banks are interested in integrating crypto into their operations they should be guided by certain rules and regulations set forth by the government. According to Kozlachkov, proper regulation of digital currencies is needed before banks can effectively deal with them. 
He said, “If the Russian authorities allow companies to trade in crypto, we need to understand what will happen to their balance sheets”. Kozlachkov also noted that “We will also need to know how much [crypto] companies are allowed to hold compared to other assets, and we need to develop rules to eliminate any risks.” 
<figure id="attachment_23846" aria-describedby="caption-attachment-23846" style="width: 100%" class="wp-caption aligncenter">
 <img loading="lazy" decoding="async" class="size-full wp-image-23846" src="https://www.turkishnyradio.com/wp-content/uploads/2024/10/f33b2764-f3b8-4d1c-9936-b03068347b8c.jpg" alt="Russian Banks Eye Crypto to Bypass Western Sanctions" width="1792" height="1024" title="Russian Banks Eye Crypto to Bypass Western Sanctions 52" srcset="https://www.turkishnyradio.com/wp-content/uploads/2024/10/f33b2764-f3b8-4d1c-9936-b03068347b8c.jpg 1792w, https://www.turkishnyradio.com/wp-content/uploads/2024/10/f33b2764-f3b8-4d1c-9936-b03068347b8c-768x439.jpg 768w, https://www.turkishnyradio.com/wp-content/uploads/2024/10/f33b2764-f3b8-4d1c-9936-b03068347b8c-1536x878.jpg 1536w" sizes="(max-width: 1792px) 100vw, 1792px">
 <figcaption id="caption-attachment-23846" class="wp-caption-text">
 Russian Banks Eye Crypto to Bypass Western Sanctions
 </figcaption>
</figure> 
A number of banking institutions in Russia have already shown signs of willingness to engage in activities within the crypto space. Some have even come up with blockchain-based investment platforms and online digital financial asset services. But they only trade in their own version of tokens and not Bitcoin itself. Not only that, major players like Sberbank have hints of NFT trading under the hood as well, but nothing on public blockchains yet. 
<h2 id="b-crypto-as-a-sanctions-busting-tool-b">Crypto as a Sanctions-Busting Tool?</h2> 
The desire to use digital assets in circumventing international sanctions underlie an interest of participation in a Russian Banks crypto pilot. A few banks have suggested creating crypto exchange-type platforms, where Russian companies could conduct trade with overseas partners. Such platforms could give Russian companies the ability to make payments with cryptocurrencies such as Bitcoin or Ethereum and circumvent some of the banking constraints they face under Western sanctions. 
Recently, the Central Bank of Moscow has initiated a pilot project in which certain corporations will receive regulatory “sandboxes” for goods and services paid with Bitcoin as well as other cryptocurrencies. That being said, it is a way towards wider crypto adoption in Russia although for now, the specifics of how anyone will actually be able to buy or sell this crypto within their sandbox is yet to be determined. 
<h2 id="b-potential-implications-for-russian-banks-in-the-world-of-crypto-b">Potential Implications for Russian Banks in the World of Crypto</h2> 
Kozlachkov reportedly said that as <a href="https://cryptonews.com/news/russian-banks-want-to-join-moscows-crypto-pilots/" rel="nofollow noopener" target="_blank">Russian banks</a> share their intention to participate in the cryptocurrency pilot, it is important for risk management with respect to crypto trading to be executed carefully. The banking sector is more than able to cope with these, he said the banks have always understood risk (and good ones know how to mitigate it), so they were used to dealing in highly volatile assets. He also said that it would be likely to attract a significant proportion of retail investors and smaller institutions based on individual professional client criteria. 
<figure id="attachment_23849" aria-describedby="caption-attachment-23849" style="width: 100%" class="wp-caption aligncenter">
 <img loading="lazy" decoding="async" class="size-full wp-image-23849" src="https://www.turkishnyradio.com/wp-content/uploads/2024/10/2e908308-c91c-4468-86f6-63cad29ef0cf.jpg" alt="Russian Banks Eye Crypto to Bypass Western Sanctions" width="1024" height="819" title="Russian Banks Eye Crypto to Bypass Western Sanctions 53" srcset="https://www.turkishnyradio.com/wp-content/uploads/2024/10/2e908308-c91c-4468-86f6-63cad29ef0cf.jpg 1024w, https://www.turkishnyradio.com/wp-content/uploads/2024/10/2e908308-c91c-4468-86f6-63cad29ef0cf-768x614.jpg 768w" sizes="(max-width: 1024px) 100vw, 1024px">
 <figcaption id="caption-attachment-23849" class="wp-caption-text">
 Russian Banks Eye Crypto to Bypass Western Sanctions
 </figcaption>
</figure> 
“If crypto trading is permitted, regulators would need to apply an ultra-conservative approach to transactions,” says Kozlachkov. This conservative approach would serve to minimize the crypto volatility risk, which can cause drastic asset devaluation in a matter of minutes. 
Sources also reveal that Kozlachkov even hinted at the possibility of Moscow setting new and more stringent requirements being implemented for Russians before they could join the game,&nbsp; in order to ensure only sophisticated investors are involved. 
<h2 id="b-conclusion-b">Conclusion</h2> 
The growing curiosity about Russian Banks’ crypto activities underscores the changing financial curve in Russia. The Central Bank crypto pilot could provide a strategic passage for digital asset adoption as Russia continues to grow in its efforts to neutralize Western sanctions. The promising future of the Russian crypto landscape could definitely see major banks participating as regulatory frameworks and risk management guidelines are still in development. 
Tune into the <a href="https://www.turkishnyradio.com/">Turkishnyradio</a> for more updates and news on the crypto world.&nbsp; 
&nbsp;

Russian Banks Eye Crypto to Bypass Western Sanctions

Table of Contents

TNYR

Other articles published on Oct 17, 2024

Nick Szabo, Len Sassaman, or Someone Else: Who is the Real Satoshi Nakamoto?

US lagging behind in global stablecoin adoption — Chainalysis

UAE Introduces VAT Exemption for Cryptocurrency Transfers and Conversions

VanEck Expands into Venture Capital with $30M Fund for Fintech, Blockchain, and AI

Coinbase Integrates ZetaChain Mainnet, Supports ZETA Custody

Ripple News: CEO Brad Garlinghouse Considers IPO Path, says ‘SEC is Not our Friend’

Join our free newsletter for daily crypto updates!