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The lender said that it had received approval for a license that would allow businesses to start issuing digital assets using its distributed ledger technology platform.
Following US economic sanctions, Russia’s leading lender was given a license by the country’s central bank to begin producing digital assets. The institution’s worth plummeted earlier this month as a result of the penalties.
Sberbank said in a statement on Thursday that it has been added to the list of information system operators, or approved organizations, that issue digital financial assets.
Ready to issue digital coin but what new?
In a statement, Sergey Popov, head of the Transaction Business Division, stated, “Companies will be able to perform their first transaction on our blockchain platform one month from now.”
Companies will be allowed to issue their own digital assets if they can demonstrate that they have the necessary funds. Companies will also be able to employ digital assets generated by the bank’s information system, allowing them to invest their presently idle capital in order to create income, according to Sberbank.
The bank’s digital assets would be recorded and disseminated via a distributed ledger technology system, which will provide “data security” and “data immutability,” according to the statement.
The immense pressure of sanctions
US sanctions imposed on Sberbank as a result of the current Ukraine-Russia crisis are putting pressure on the bank.
The directive comes as the United States imposes sanctions on Russian financial institutions, organizations, and individuals in response to Russia’s invasion of Ukraine, which began on February 24. The US and the European Union have sanctioned Sberbank, a state-owned bank.
On the London Stock Exchange, Sberbank lost 95% of its value at the start of the month. Sanctions have also taken a toll on other London-listed stocks, including Lukoil, Novatek, and Rosneft.
The lender is Russia’s leading creditor issuer and has the greatest market share of savings deposits. It operates in a number of European countries, making it the continent’s largest bank on the eastern side.
The subject of whether or to what degree Russian government-affiliated organizations may utilize cryptocurrency to evade Western sanctions is a hot topic in Washington, with a Senate hearing scheduled for Thursday. A bipartisan group of senators offered new laws during the hearing.
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Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
