Sber Bank, the biggest bank in Russia, today revealed that it has launched a blockchain-based digital asset exchange with gold-backed products.
This is a fascinating idea because there has been much discussion over whether cryptocurrency is regarded as a security or a commodity in the US.
The recent emergence of cryptocurrency backed by a store-of-value good like gold may alter Russia's financial environment.
Excerpts from Bitcoin.com;
“We were attracted by the new digital format for gold, and we decided to try a new way to diversify the company’s balance sheet … We think that a new format of investment in precious metals can find its niche in the market,” commented Maxim Nazhmetdinov, the chief executive of Solfer.
“The deal demonstrates interest from the market and the real sector in a new instrument that can become a good alternative to investments within the de-dollarization of the economy,” First Deputy Chairman of Sber’s Board Alexander Vedyakhin stressed.
Pressed by sanctions over the war in Ukraine, Russia has been preparing to broaden its legal framework for DFAs to also cover decentralized cryptocurrencies.
While there is a general consensus among regulators in Moscow against the free circulation of bitcoin in the country, the government is considering legalizing crypto payments in international settlements.
Given that the Russian government had previously taken a tough position against the cryptocurrency business only a few years ago, it is extremely intriguing that this is coming from Russia.
However, it appears that the nation's position on cryptocurrencies has evolved as a result of recent geopolitical tensions and worries over the value of the Russian ruble.
After all, a significant portion of the nation's residents have begun to utilize the blockchain as a way to transfer and maintain money without the involvement of a bank or the government.
In the future, Sber Bank plans to broaden this new DFA product offering in an effort to draw even more international institutional investors.
It might only take a short while before other multinational banks in other nations start looking into this possibility.