The state-owned Gazprombank, Russia’s third-largest bank, is reportedly looking

to launch a cryptocurrency pilot program in Switzerland later this year. This

comes as Russia still lacks the necessary regulatory framework to facilitate

domestic cryptocurrency transactions. However, with two separate draft laws

making considerable headway in the State Duma this past month, it seems only a

matter of time before Russian regulations will catch up to the growing popularity

of cryptocurrency and blockchain technology.

The Swiss pilot program can be seen as a way for the Russian bank to test drive

cryptocurrency solutions ahead of the two aforementioned cryptocurrency bills

officially being drafted into Russian law this summer. As the current regulatory

framework in Russia prohibits cryptocurrency deals, Gazprombank is leveraging a

Swiss subsidiary to bypass Russian legislation in favor of the significantly more

attractive cryptocurrency-related legislation in Switzerland.

In announcing the project, Gazprombank follows in the footsteps of Russia’s

largest bank, Sberbank, which this January declared that the company would

open a cryptocurrency exchange in the Alpine nation, as well as to establish a

Swiss blockchain lab. This highlights the fact that many Russian financial

institutions are looking to establish pilot projects abroad to perfect their

cryptocurrency technologies, whilst pending legislative go-ahead for

cryptocurrency activity in their domestic market.

Aleksandr Sobol, Gazprombank’s deputy chairman, stated that the bank would

mainly be testing cryptocurrency deals as a response to ”demands from several

major private clients”, bearing testament to the growing importance of crypto in

business settings. Furthermore, Sobol reports that the Russian bank has not yet

implemented any cryptocurrency-based solutions in the company’s management,

likely mainly due to awaiting regulatory approval in Russia. However, Sobol

stressed that even though the bank had not yet adopted any blockchain

technology, Gazprombank is continuously monitoring and evaluating the strides

being made in the crypto and blockchain field, readily searching for potential

future applications.

Image Source: “Flickr”