In a groundbreaking move, the Russian megabank Rosbank recently launched a cross-border crypto payments pilot, making it the first major national bank to offer such services in cryptocurrency. This innovative initiative is in partnership with B-Crypto, a local firm specialized in international payments in digital currencies.
The pilot aims to streamline international transactions by allowing companies to pay for imported goods or services in cryptocurrency after completing Know-Your-Customer/Client (KYC) protocols. Instead of purchasing crypto directly, firms deposit fiat funds for the purchase of cryptocurrency in a designated Rosbank account. The bank then transfers the funds to B-Crypto, and the firm buys cryptocurrency for foreign suppliers in countries that have a more accepting attitude toward digital currencies.
While this groundbreaking development is welcomed by many crypto enthusiasts, it is essential to highlight potential roadblocks and hesitations that might arise as a result of this innovation. One of these concerns comes from Alexey Voylukov, the Vice-President of the Association of Banks of Russia. He pointed to the lack of cryptocurrency liquidity necessary to service the operations of large clients, insisting that smaller banks mainly handle cross-border crypto transfers.
Additionally, some legal experts question the sustainability of Rosbank’s move, as many countries are working to include crypto transactions in sanctions packages. As central banks worldwide adopt varying stances on digital currencies’ adoption and regulation, the future of cross-border crypto payments remains uncertain.
The Central Bank of Russia, known for being crypto-skeptic, has so far claimed that tokens “will not become a panacea for international payments.” However, it admits that “everything must be done” to let Russian companies trade with foreign partners, potentially indicating a shift of attitude over time. Furthermore, the Central Bank is considering launching a pilot platform facilitating domestic crypto miners to sell their tokens overseas.
While Rosbank leads the way in offering cross-border crypto trading services in Russia, it should be noted that none of the other major banks in the country have confirmed the provision of similar services. As the potential issues and risks continue to emerge around the unprecedented use of cryptocurrencies, it remains to be seen how countries will tackle the regulatory challenges and embrace these disruptive innovations.
Source: Cryptonews
