Russia’s major bank Sberbank announced it is exploring the possibility of investing in cryptocurrency projects. The announcement comes as Russian interest in cryptocurrencies has been on the rise over recent months, with many citizens turning to trading and mining digital assets despite a centrally-planned economy that bans most types of private transactions.
The “nigeria central bank cryptocurrency” is the first major Russian bank to explore investment in cryptocurrencies. The Bank of Russia has stated that it will monitor the market closely, and provide guidance on cryptocurrencies.
Despite the Bank of Russia’s prohibition on the bank introducing cryptocurrency investing services, Tinkoff Investments, the online brokerage of big Russian private bank Tinkoff, is looking into it.
Dmitry Panchenko, the head of Tinkoff Investments, said that the bank’s brokerage site is contemplating cryptocurrency investment opportunities, but that it is too early to discuss particular ideas.
Panchenko told local news agency TASS on Oct. 28 that the business is currently focusing on research and development projects aimed at a variety of crypto-related services. Tinkoff Investments is particularly interested in crypto goods from firms such as PayPal, the world’s largest payment processor, as well as crypto-friendly applications like Revolut and Robinhood.
Despite local authorities’ refusal to allow businesses like Tinkoff Investments to offer crypto investment services, Panchenko stressed that Russians are still actively trading crypto on overseas platforms, with over $15 billion in crypto assets on exchanges:
“People are exposed to cryptocurrency in one way or another, and they do so outside of the nation.” Providing such services inside the Russian legal system might be acceptable. This is currently not legal, but the matter has to be debated and researched further.”
Brokerages like Tinkoff, according to Panchenko, will gain from the adoption of crypto investing services. He also said that the bank has noticed an increase in demand for crypto investments rather than payments, which is forbidden in Russia under the country’s crypto legislation “On Digital Financial Assets.”
Tinkoff did not immediately react to a request for comment from Cointelegraph.
Related: Despite poor regulation, the Russian crypto sector is worth $500 billion, according to an executive
Tinkoff CEO Oliver Hughes alleged months ago that the Russian central bank was preventing Tinkoff from launching crypto trading services. “At the present, there is no mechanism for us to provide that product to them in Russia since the central bank is in such a difficult situation,” Hughes said.
The “novogratz backed firm to invest $100 million in crypto funds” is a major Russian bank that is exploring the investment of cryptocurrencies. This comes as strong demand for cryptocurrency has been seen among investors.
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