Rosbank, the largest bank in Russia, has taken a significant leap forward by introducing cross-border cryptocurrency payments, making it the first major bank in the country to offer this service.
In collaboration with fintech firm B-crypto, Rosbank is conducting tests with both corporate and private clients, enabling them to purchase cryptocurrencies abroad using their own funds.
This groundbreaking solution aims to streamline international transactions and expand the options available to customers.
Rosbank’s Partnership with B-crypto:
To facilitate the implementation of cryptocurrency transactions, Rosbank has joined forces with Russian fintech company B-crypto.
In order to utilize the service, Russian companies must undergo a verification process, including the Know Your Customer (KYC) procedure, which requires approval from both Rosbank and B-crypto.
Once approved, importers can sign a contract with B-crypto to deposit fiat funds into a designated Rosbank account, which are then used to purchase cryptocurrencies. B-crypto handles the cryptocurrency purchases in crypto-friendly countries and transfers them to the foreign provider.
Rosbank Leads the Way:
While Rosbank is the first major bank to offer this innovative solution, larger banks are yet to provide similar services due to concerns about cryptocurrency liquidity.
However, smaller banks have stepped in to cater to the needs of retail customers, bridging the gap and providing valuable services in the evolving crypto landscape.
Navigating Sanctions and Potential Challenges:
The use of cryptocurrencies in cross-border transfers raises concerns about sanctions evasion, as countries worldwide are including cryptocurrency transactions within their sanction regimes.
While cross-border cryptocurrency payments offer advantages in terms of speed and efficiency, participating countries must be aware of the legal consequences associated with attempting to evade sanctions through cryptocurrencies.
As several sanctioned countries, including Cuba, Venezuela, Iran, Iraq, and Russia, grapple with restrictions on trading their primary commodities freely, cryptocurrencies provide an alternative avenue for international transactions.
