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Russia’s Largest Bank Scraps Crypto Plans Even with Pro-Bitcoin CEO

Russia’s Largest Bank Scraps Crypto Plans Even with Pro-Bitcoin CEO


Sberbank, the largest bank in Russia, scrapped its crypto plans, citing the anti-bitcoin sentiments of the Russian Central Bank and government regulators. | Source: Shutterstock

By CCN: Sberbank, the largest bank in Russia, is scrapping its crypto plans, citing the anti-bitcoin sentiments of government regulators. Ironically, the CEO of Sberbank, Herman Gref, is a bitcoin proponent.

However, others at Sberbank are not convinced of the merits of virtual currencies, so they’re suspending all cryptocurrency-related projects. Andrey Shemetov, the global markets head at Sberbank, made the announcement at a May 30 press conference, Tass reported.

“We waited for legislation that allows you to trade cryptocurrencies. Since the regulator is currently looking negatively [at bitcoin], we decided to suspend our cryptocurrency plans.”

Russia Delays Roll-Out of Regulations

This news is not surprising considering that Russia postponed the roll-out of long-awaited crypto regulations last week. In February, Russian President Vladimir Putin ordered the government to adopt crypto regulations by July 1.

However, those plans were abruptly suspended last week. At the time, a top official with the Russian State Duma warned that bitcoin can “ruin governments” by facilitating the offshoring of massive amounts of money.

Bitcoin Can Wreak Havoc by ‘Ruining’ Governments: Senior Russian Official

— (@CCNMarkets) May 21, 2019

Putin: Bitcoin Is a Magnet for Criminals

The Russian Parliament’s anti-bitcoin stance echoes the viewpoints espoused by both President Vladimir Putin and the Central Bank of Russia.

Specifically, Putin said bitcoin’s anonymous network attracts criminals and facilitates money-laundering (video below).

“[The risks include] opportunities to launder funds acquired through criminal activities, tax evasion, even terrorism financing, as well as the spread of fraud schemes.”

Similarly, Russia’s central bank has dismissed bitcoin as a pyramid scheme.

“We have seen how bitcoin has transformed a payment unit into an asset, which is bought in order to obtain a high yield in a short period of time. This is the definition of a pyramid.”

CEO of Russia’s Largest Bank Is Pro-Crypto

Despite the negative consensus among top government officials, Herman Gref — CEO of Sberbank — is a vocal bitcoin proponent.

As CCN reported, Gref has called cryptocurrency a “great technology,” and he’s very bullish about blockchain.

Gref has urged Russian authorities to be patient with decentralized currencies by not banning bitcoin until its uses are better understood. However, Gref does not believe that cryptocurrencies will replace fiat money in today’s centralized financial system.

In October 2018, Gref expressed skepticism about the near-term future of crypto, saying it could be another decade before it gains mainstream adoption.

Gref says a 10-year timeline for mainstream acceptance is more realistic because the crypto industry is still in its infancy. He says:

“I’m optimistic about 10 years. So far, it’s not likely that any state is ready to part with the centralized money-supply model.”

Industrial-Scale Adoption of Blockchain Likely in 1-2 Years, Says CEO of Russia’s Largest Bank

— (@CCNMarkets) November 17, 2018

About The Author

Samantha Chang

Samantha Chang is a financial editor who writes about politics at BizPac Review and about cryptocurrencies and business at CCN. She is a law school graduate and an alum of the University of Pennsylvania who enjoys finance, flowers, and fitness. You can find her on Twitter at Samantha_Chang.

This article was edited by Gerelyn Terzo.

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