Russia’s Leading Bank Plans To Develop Ruble Pegged Stablecoin

August 5, 2020 5:02 PM UTC

Russia’s major bank, Sberbank, has announced to develop its own token. As per executives, Sberbank is examining the feasibility of launching stablecoin.

On August 3, Kommersant, a local news company, reported that Sergey Popov, director of the transaction business at Sberbank, has passed a statement clarifying that Russia’s leading banking system is considering to launch stablecoin backed 1:1 to Ruble.

Popov’s statement further disclosed that Sberbank is looking to introduce the token following the newly legislated crypto law entitled “On Digital Financial Assets.” According to the officials, stablecoin will have the ability to carry out numerous transactions concerning digital financial assets.

The exec said:

“We probably may issue a stablecoin on the basis of the law that has been adopted recently. As we can peg this stablecoin to the ruble, this token could become a basis or an instrument for settlements involving other digital financial assets.”

Stablecoin Explodes as Bitcoin Attain New High

Sberbank has already been driving several crypto-related projects. Earlier reports showed that Sberbank had invested almost $100 million on 5,000 blockchain-based ATMs that are competent in crypto mining. 

Sberbank’s new crypto initiative comes at the time when various stablecoins, including Tether (USDT), have undergone a notable increase in market cap. Crypto experts have observed a massive jump in USDT, DAI, and USDC transfer volume in response to the Bitcoin bull run.

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