Russia’s Largest Bank Sberbank to Issue Its Own Digital Currency

Jafrin  |  Jan 22, 2021

Sberbank, the largest state-owned bank in Russia, has applied to the country’s central bank for seeking approval for launching a blockchain-based platform. This will in turn help the bank towards launching its own digital currency. Reportedly, the application was initially filed in early January. If approved the blockchain platform will be launched by spring.

Sberbank to Issue Its Own Digital Currency

On Jan. 21, Sergey Popov, director of the transaction business at Sberbank, announced the news at a local financial event as reported by the Russian news agency Interfax. Apparently, Sberbank is planning to issue its own stablecoin dubbed 'Sbercoin' this spring. Popov added the bank has already submitted a filing with the Bank of Russia to register its own blockchain platform, saying:

"The registration procedure takes 45 days and during this period the site will either be registered or we will receive any comments by law. There is a high probability that this project will already be launched this spring."

Popov also noted Sberbank has completed internal testing of the technology and is ready to work with such a fiat currency:

"Technologically, the bank is ready to work with such fiat currency, we have tested it inside and saw that this solution works."

Sberbank Partnered With JPMorgan for Experimenting Its Digital Currency

At the financial event, Digital transformation and prospects for regulating the digital economy, Popov said that Sberbank applied with the central bank in early January, explaining that the registration procedure usually takes no longer than 45 days. As such, the bank may launch its platform and stablecoin by the spring of this year.

Sberbank first reported its plans to launch its own stablecoin back in August 2020. Meanwhile, in mid-October, the Bank of Russia also announced the start of consultations on the launch of a digital version of the ruble, the country's official digital currency. Earlier last month, Sberbank announced a partnership with JPMorgan for experimenting with its digital currency. Although, the details and tentative timeline on that pilot were not clear then.

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