FameEX Hot Topics | Rosbank of Russia Introduces Cross-Border Crypto Payments Solution for Enhanced Settlements

Rosbank, one of Russia's significant banks, has become the first large financial institution in the country to offer clients the option to use cryptocurrencies for international settlements. In collaboration with a Russian fintech platform called B-crypto, the solution primarily caters to businesses engaged in transactions with foreign partners.

Rosbank has introduced a cryptocurrency payment service for cross-border settlements, making it a pioneer in the sector. The bank has ensured that the service complies with existing Russian legislation and the requirements of the Central Bank of Russia (CBR). Although the CBR opposes the free circulation of cryptocurrencies within the country, it has expressed openness to their use in cross-border transactions outside of the Russian financial infrastructure.

Under the current "On Digital Financial Assets" law, Russian residents are prohibited from accepting digital currencies as payment for goods and services. However, the State Duma is considering amendments to expand the legal framework to include cryptocurrencies and establish "experimental legal regimes" to legalize crypto transactions.

Rosbank's new service is facilitated by B-crypto, a fintech platform specializing in processing cross-border settlements using digital currencies. When a Russian company chooses to pay a foreign counterpart with cryptocurrency, the contractual agreement must reflect this decision, and the supplier's invoice should include a wallet address and the specified amount of cryptocurrency. While Rosbank handles fiat deposits, B-crypto is responsible for crypto conversion and payment processing.

With Western sanctions imposed due to the Ukraine invasion, the Russian government and businesses have been exploring avenues to bypass financial restrictions imposed by the West. This has led to increased consideration of national currencies and cryptocurrencies for cross-border transactions.
A body representing Russian businesses recently appealed to President Putin for support in legalizing crypto settlements in foreign trade. Russian officials have acknowledged that despite the lack of comprehensive regulation, Russian companies are already using cryptocurrencies in cross-border payments.

The move by Rosbank to offer cryptocurrency-based cross-border settlement services aligns with the growing interest in leveraging digital currencies to navigate financial restrictions and explore alternative payment options. As the pilot transactions progress, it will be interesting to observe how this development shapes the landscape of international settlements in Russia and potentially influences further regulatory discussions around cryptocurrencies.

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