Rosbank throws a digital lifeline to Russian businesses throttled by Western sanctions.

Rosbank, a major Russian bank, has introduced a new option for clients to use cryptocurrencies in international transactions, focusing on businesses engaged in foreign partnerships. The bank is currently testing the service with corporate and individual clients, while ensuring compliance with Russian legislation and regulations.

The fintech platform B-crypto provides support for Rosbank’s new service, specifically designed for processing cross-border settlements using digital currencies. If a Russian company decides to make a cryptocurrency payment to a foreign partner, this transaction must be documented in their contract, and the supplier’s invoice should include a wallet address and the specified amount of cryptocurrency. (Bitcoin.com)

While Rosbank accepts traditional fiat deposits, B-crypto handles the conversion of cryptocurrencies and manages the payment processing. The partnership with B-crypto therefore enables the processing of cross-border settlements involving digital currencies.

In response to Western sanctions, the Russian government and businesses are exploring the use of national currencies and cryptocurrencies to overcome financial restrictions. Russian businesses have called on President Putin to legalize cryptocurrency settlements in foreign trade, despite the absence of comprehensive regulations.

Rosbank is owned by oligarch Vladimir Olegovich Potanin, who is Russia’s richest man according to Bloomberg. Potanin was also sanctioned by the US Treasury last year.

Despite the Central Bank of Russia’s reservations, Rosbank’s offering aligns with its stance on using cryptocurrencies for cross-border transactions outside of the country’s financial system.

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Photo by André François McKenzie on Unsplash