One of Russia’s largest banks is reportedly launching a new cross-border payment system that uses crypto assets.
According to a recent report by the Russian publication Vedomosti, a Rosbank representative says the institution is already conducting test transactions with retail and corporate clients.
While it’s not clear which digital assets the bank will support for cross-border payments, Russian fintech group B-crypto will handle the technical aspects of the new protocol.
To use the service, customers must undergo a know-your-customer (KYC) verification process with both the bank and B-crypto, according to a report from the RBC Group.
In the report, Alexey Voylukov, the vice president of the Association of Banks of Russia, says crypto-focused cross-border payments are generally offered by smaller banks and large-scale institutions have yet to adopt such services.
Vladimir Chistyukhin, First Vice President of the Bank of Russia, notes that cross-border payments are not intended to become a full-time remedy for international payments.
Late last year, the US Treasury Department sanctioned Rosbank, as well as Vladimir Potanin, believed to be Russia’s richest man and owner of the bank, in an effort to limit Moscow’s ability to fund its war against Ukraine.
In the RBC Group report, attorney Eduard Davydov, senior partner at Emet Law Firm, says the cross-border payment system could potentially be a way for Rosbank to circumvent the sanctions imposed on it.
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