Russias Sberbank Seeks to Create Its Own Digital Asset Next Year

Wednesday 02 December 2020, 8:22 AM AEST - 1 month ago

One of Russias largest banks – known as Sberbank – says that its potentially looking to issue its own cryptocurrency sometime next year.

Sberbank Is Joining the Crypto Bandwagon

The coin – which would be known as Sbercoin – will be issued directly by the financial institution as part an experiment through its recent partnership with JPMorgan, which in the past, has also taken the liberty of issuing a cryptocurrency all its own known as JPM Coin. Many banks and financial enterprises throughout the world have sought to release their own cryptocurrencies in recent months following news that China is issuing digital versions of the yuan, its native currency.

Herman Gref – CEO of the Russian banking group presiding over Sberbank – says that the cryptocurrency will likely be issued after January 1. He says that on this day, Russia is set to integrate a new digital currency law that will permit regulators to oversee crypto activity. This is positive in that it will prevent the government from outlawing them completely, which is a path Russia has sought in prior months.

In a recent interview, Gref comments:

From January 1st, the law comes into force. We want to bring to the market our new blockchain platform, which will provide services for the purchase of digital financial assets.

The situation is something of a two-sided coin (pardon the pun). On the one hand, it suggests that many banks are reaching the conclusion that cryptocurrency is likely here to stay, and they had best jump on the digital asset bandwagon before they fall behind. However, there is also a major problem in that initially, cryptocurrencies were designed to be decentralized, and this goes against such a notion.

For a cryptocurrency to be issued by a bank or financial institution, it would have to be a centralized asset. ...

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