Major Russian Bank Set to Launch its own Stablecoin in 2021

A number of central banks around the world have been mulling the use of digital currencies for some time now, with several of them moving ahead and conducting pilot projects. Recall, the People’s Bank of China revealed in early 2020 that it has issued a digital version of its currency, with the pilot project slated for completion prior to the 2022 Winter Olympics. As of recent, the Bank of France also announced the successful completion of its digital currency pilot project— the first of its kind to utilize a private blockchain platform.

Now, one of Russia’s largest lenders, Sberbank, has also entered the stablecoin hype, and has submitted an application for a blockchain platform to the Central Bank of Russia. According to the Director of the Transaction Business Division at Russia’s central bank, Sergey Popov, Sberbank submitted its application for the platform in the beginning of January, as per Russia’s law on digital financial assets.

Popov reveals that Sberbank has already completed the necessary internal trials, and that it is “technologically ready to work with such a fiat currency.” Popov notes that the registration process can take up to 45 days, and if the central bank does not return with any objections, there is a high probability that Sbercoin could be launched as early as spring 2021.

However, Popov also explained that Sberbak still has some issues to resolve related to the digital currency, including the taxation of digital financial assets, as well as the use of the token. According to Sberbak’s top manager, the token would be used as a “digital promissory note,” with the potential to replace its paper counterpart. Earlier, Popov revealed that Sbercoin could actually be a stablecoin, which would be pegged to the Russian ruble.

Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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