Since Russia started its war on Ukraine, a massive amount of restrictions have been imposed on the country, cutting it off from the global financial system. In return, Russia’s largest bank launched a cryptocurrency.
In March, shortly after the invasion took place, trading in Sberbank shares was stopped in London, after they plunged 95%. The lender was given an order to close its European business as Western sanctions sent Russia’s economy into mayhem. The sanctions sent the Ruble plunging and caused an emergence of a black market in dollars and euros in Russia.
Two weeks later, the Russian central bank allowed Sberbank to issue its own cryptocurrency, according to media reports. On the same day, March 17, the sbercoin was launched.
According to analysts, Russia wants to use sbercoin to exchange rubles for other currencies, and escape constraints. But the possibility of doing this is debatable, according to Asheesh Birla, general manager at blockchain-based payments service provider RippleNet.
