Gold-backed cryptocurrencies have been issued in Russia

 

Gold-backed cryptocurrencies have been issued in Russia

Russia's largest bank

Sber Bank

announced that it had released gold-backed digital assets on its blockchain.

This is an interesting concept because there has been a lot of debate about whether encryption is considered a security or commodity in the United States.

Now that there is a new presence of cryptocurrencies powered by a valuable commodity such as gold, this could change Russia's financial landscape.

Gold-backed cryptocurrencies have been issued in Russia

The recent Russian law called "On Digital Financial Assets" was the law that enabled companies to start coding different financial assets such as gold.

What Sber Bank has done now is

that they basically created a new digital format for

gold that is now on the blockchain that users can get.

This is expected to attract many investors and new institutions, especially since there is a lot of concern about inflation of paper currencies.

According to recent reports:

Maxim Nazmetdinov commented:

• We have attracted the new digital form of gold

• and made the decision to test a novel strategy for

• diversifying the company's financial sheet.

• We believe that the new form of investing in

• Precious metals can develop a market for themselves.

Alexander Fejdin

Senior Vice-Chairman of Spear's Board of Directors, confirmed:

The deal shows market and real sector interest in a new tool that can become a good alternative to investments in the context of removing the dollar from the economy.

pressed by sanctions resulting from the fighting in Ukraine

Russia is getting ready to broaden its legal system to

DFAs to also include decentralized cryptocurrencies.

While there is :

a general consensus among Moscow regulators against

the free trading of bitcoin in the country

1. The Government was considering legalizing
2. cryptocurrency payments in international settlements.

Interestingly :

• this comes from Russia given that

• Previously, the Russian government had adopted a strict

• stance against the cryptocurrency industry just two years ago.

However :

• current geopolitical disputes and concerns about the value of

• the Russian ruble appear to have changed

• the country's position on encrypted assets.

After all

many citizens in the country began using

the blockchain as a means to preserve wealth

and transfer wealth without any interference from the bank or government.

Sber Bank intends to expand this new DFA production line in the future in order to attract more institutional investors

from around the world.

1. It will just be a matter of
2. time before other international banks in
3. other countries start exploring this option.

We expect the number of corporate customers on our platform to grow rapidly and plan to expand our digital financial assets production line.

The current legislation on DFA was drafted in 2020.

Russian President Vladimir Putin signed a bill in July 2022 banning digital financial assets as a method of payment.

In June :

1. Another state-owned Russian bank subsidiary
2. VTB Factoring, announced its first major deal
3. with digital finance assets.

As part of the transaction

the bank's subsidiary acquired a symbolic debt group for the engineering company Metrowagonmash, which was issued via the fintech Lighthouse platform.

• Later in July, Sber tested its first agreement with DFA.

• releasing three-month assets worth 1 billion Japanese yen

• (about US $14.5 million).