{"id":18625,"date":"2023-06-05T22:15:24","date_gmt":"2023-06-06T02:15:24","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/russias-rosbank-begins-intl-crypto-pay-pilot\/"},"modified":"2023-06-05T22:15:25","modified_gmt":"2023-06-06T02:15:25","slug":"russias-rosbank-begins-intl-crypto-pay-pilot","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=18625","title":{"rendered":"Russia\u2019s Rosbank Begins \u2018Int\u2019l Crypto Pay Pilot\u2019"},"content":{"rendered":"
\n

The Russian megabank Rosbank says it has launched a \u201ccross-border crypto payments\u201d pilot.<\/p>\n

Per RBC, Rosbank has become the \u201cfirst major\u201d Russian bank to launch cross-border payments services \u201cin cryptocurrency.\u201d<\/p>\n

The bank has teamed up with a local crypto firm named B-Crypto for its initiative.<\/p>\n

B-Crypto works as an \u201cintermediary\u201d by \u201cbuying cryptocurrency abroad\u201d on behalf of importers before \u201ctransferring [coins] to foreign suppliers.\u201d<\/p>\n

The banks said that it was \u201calready conducting pilot transactions with corporate and private clients.\u201d<\/p>\n

B-Crypto reportedly specializes in \u201cmaking international payments in digital currencies.\u201d<\/p>\n

Companies can reportedly use the pilot platform to \u201cpay for imported goods or services in cryptocurrency\u201d after completing Know-Your-Customer\/Client (KYC) protocols.<\/p>\n

The platform also requires vendors to submit invoices to Russian buyers in crypto rather than fiat.<\/p>\n

Firms will not buy crypto as part of the deal.<\/p>\n

Rather, they will reportedly \u201cdeposit fiat funds for the purchase of cryptocurrency\u201d in a special Rosbank account.<\/p>\n

The bank then transfers this money to B-Crypto.<\/p>\n

And this firm then \u201cbuys cryptocurrency in friendly countries and transfers it to foreign suppliers.\u201d<\/p>\n

The media outlet Vedemosti, which first broke the news, reported that it had approached the 50 biggest banks in Russia for comment.<\/p>\n

But it reported that none of these banks confirmed they were providing similar services.<\/p>\n

Russia\u2019s Cross-border Crypto Trading Plan \u2013 Will It Work?<\/h2>\n

But Alexey Voylukov, the Vice-President of the Association of Banks of Russia, said that cross-border crypto transfers were mainly handled by \u201csmaller banks.\u201d<\/p>\n

Voylukov added that leading banks were hesitant to launch similar pilots \u201cdue to the lack of cryptocurrency liquidity necessary to service the operations of large clients.\u201d<\/p>\n

A legal expert also expressed doubt about Rosbank\u2019s move.<\/p>\n

The lawyer claimed that \u201cmany countries are taking steps to include crypto transactions\u201d in sanctions packages.<\/p>\n

But top Russian politicians have confirmed that some domestic companies are already doing business in crypto.<\/p>\n

Moscow is yet to officially give its blessing to this.<\/p>\n

But it is either approving crypto-powered trade behind closed doors or turning a blind eye to the practice.<\/p>\n

The crypto-skeptic Central Bank has previously claimed that tokens \u201cwill not become a panacea for international payments.\u201d<\/p>\n

But it has conceded that \u201ceverything must be done\u201d to allow Russian firms to trade with foreign partners.<\/p>\n

The Central Bank also wants to launch a pilot platform that would allow domestic crypto miners to sell their tokens overseas.<\/p>\n

<\/oembed><\/figure>\n

Around a year ago, the French banking partner Societe Generale sold its stake in Rosbank and announced that it was \u201cexiting\u201d the nation.<\/p>\n<\/p><\/div>\n