FameEX Hot Topics | Russia's Rosbank Unveils Crypto Payment Solution for Improved Cross-Border Settlements

Rosbank, one of Russia's major banks, has emerged as the first large financial institution in the country to enable clients to utilize cryptocurrencies for international settlements. Partnering with the Russian fintech platform B-crypto, Rosbank's groundbreaking solution primarily targets businesses involved in transactions with foreign partners.

By introducing a cryptocurrency payment service for cross-border settlements, Rosbank has established itself as a trailblazer in this sector. The bank has ensured that the service fully complies with existing Russian legislation and adheres to the requirements set by the Central Bank of Russia (CBR). While the CBR remains opposed to the unrestricted circulation of cryptocurrencies within the country, it has expressed willingness to permit their use in cross-border transactions conducted outside the Russian financial infrastructure.

Presently, Russian residents are prohibited from accepting digital currencies as payment for goods and services under the current "On Digital Financial Assets" law. However, the State Duma is contemplating amendments to expand the legal framework, encompassing cryptocurrencies and establishing "experimental legal regimes" to legitimize crypto transactions.

Facilitated by B-crypto, a fintech platform specializing in processing cross-border settlements with digital currencies, Rosbank's new service requires contractual agreements to reflect the decision of a Russian company to pay a foreign counterpart using cryptocurrency. The supplier's invoice must include a wallet address and the designated amount of cryptocurrency. While Rosbank handles fiat deposits, B-crypto undertakes the responsibility of crypto conversion and payment processing.

In light of Western sanctions imposed due to the Ukraine invasion, the Russian government and businesses have sought alternatives to overcome the financial restrictions imposed by the West. This pursuit has fueled increased interest in both national currencies and cryptocurrencies for cross-border transactions.

A body representing Russian businesses recently petitioned President Putin for support in legalizing crypto settlements in foreign trade. Russian officials have acknowledged that despite the absence of comprehensive regulations, Russian companies have already begun employing cryptocurrencies in cross-border payments.

Rosbank's initiative to provide cryptocurrency-based cross-border settlement services aligns with the growing interest in utilizing digital currencies to navigate financial restrictions and explore alternative payment options. As the pilot transactions progress, it will be intriguing to witness how this development shapes the landscape of international settlements in Russia and potentially influences further regulatory discussions concerning cryptocurrencies.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.