Russia's Biggest Bank Sberbank to Launch Crypto Services by December

Russia's largest bank, Sberbank, is racing to build crypto tools by December, according to Russian news agency Interfax. This is a big deal because it signals that mainstream banking in Russia is opening its doors to digital currencies like Bitcoin.

So what exactly is Sberbank building? A few key things:

• A digital depository (a secure digital record-keeping system that tracks who owns what crypto and logs transactions)
• A Bitcoin and crypto wallet (a digital app or account where you store and send cryptocurrency)
• Custody services (where the bank safely holds your crypto for you, like a vault)

All of this is planned to launch by December 2024.

This push is happening while Russia's parliament, the State Duma, is debating a new law called "On Digital Currencies and Digital Rights." This law would create clear, official rules for buying, trading, and storing crypto in the country. A senior Sberbank official, Alexander Vedyakhin, said that regulators and businesses still need to write many detailed rules before everything is ready.

Why is Russia doing this now? Here's some background:

• Since 2022, using crypto to pay for everyday things has been illegal in Russia.
• In 2023, Russia legalized using crypto for international payments (paying businesses in other countries).
• Last year, President Putin signed a law allowing crypto mining (using powerful computers to create new coins) for approved companies.

A key reason behind these moves: after Russia invaded Ukraine in 2022, the U.S. and Europe cut Russia off from SWIFT (the global system banks use to send money across borders). Crypto gives Russia a way to make international payments and sidestep these sanctions.

Finally, when the new rules take effect, everyday investors won't have free rein. Lawmakers say people will need to pass a test before they can invest in crypto, and there will be limits on how much they can buy.

Bottom line: Russia is quickly moving toward regulated, bank-backed crypto services — partly to modernize finance and partly to work around global sanctions.

This is an AI-generated summary. Read the original article at: https://bitcoinmagazine.com/news/russia-to-build-out-crypto-infrastructure