A prominent lender in Russia called Sberbank is planning to create its own cryptocurrency in 2021 as it has made a partnership with JP Morgan, one of the largest banks in the United States.

The Russian renowned lender is going to engage in a partnership with JPMorgan to work on a crypto project. Herman Gref, CEO of Sberbank, revealed the news about the combined experimental project with the largest bank in the US. However, he does not reveal detailed information about it.

Prime Minister Favors Crypto

According to local reports, Prime Minister Mikhali Mishustin of Russia showed an interest in digital space. There are also rumors that the government may take the control of the crypto space. In expected legislations, Russia may implement a new tax code along with the recognition of “digital financial assets.”

Sberbank’s CEO further notes that it strives to let users access crypto products via its dedicated blockchain entity. The traditional companies show an interest in the blockchain and crypto sector after the government of Russia successfully introduced a law entitled “On digital financial assets.”

According to Gref, Sberbank’s hyperledger is only developed to carry out transactions related to finance. “From January 1st, the law comes into force, we want to bring to the market our new blockchain platform, which will provide services for the purchase of digital financial assets,” he said.

In the past, it was considered taboo to deal with cryptocurrency due to its bad image and involvement in illegal activities. But the situation has now changed with the recognition of crypto assets at a global level. In mid-October, it was reported that a detailed consultation document was released over central bank digital currency or digital ruble. It is more soothing that the Russian parliament wants to publish a clear regulatory sandbox for cryptocurrency usage in the country.

Still, there are many things in Russia that are creating a disturbance in the adoption and proliferation of digital assets and businesses related to cryptocurrency.

Russia is still far behind in central bank digital currency as compared to many rival countries, such as China. China is making enormous success in the development of CBDC or digital yuan. The central bank of China has initiated many pilot projects only to check the feasibility of digital yuan at a mass level and so far, it is going very well with astonishing results.