Russia’s largest bank has started issuing gold-backed digital assets. According to Sber (formerly Sberbank), assets like this are a fantastic alternative to the US dollar, which is rapidly losing popularity with countries such as Russia and China.
The first issue
On December 26 published Sber the news of the issuance of the first round of gold-backed tokens. Solfer, a seller and manufacturer of precious metals, was the first investor on the list. According to the document, the bank will issue a total of 150,000 tokens this round. They will be available for initial sale through July 30, 2023, while supplies last, of course.
However, it is not clear whether these are tokens backed by physical gold or some kind of derivatives linked to the gold price. Based on the documentation, the latter seems to be the case. The document also warns of the “high risks” for investors, including the risk that the bank is no longer liquid. Partly for that reason, it seems that these are derivatives and not tokens backed by physical gold.
Alternative to traditional investments
Alexander Vedyakhin, a director of the bank, claims that these types of digital tokens are an alternative to traditional investments. Sber’s director expects a high level of interest in the tokens. “We expect the number of corporate customers on our platform to grow rapidly and have plans to further expand the product line,” said Vedyakhin.
For the time being, nothing is known about any plans with Bitcoin for the bank. Incidentally, these digital tokens from Sber will not soon function as a means of payment. In July 2022, President Vladimir Putin signed another bill that prohibits the use of digital assets as a means of payment.
It will be interesting to follow the developments in the country, because they are clearly looking for alternatives to the US dollar. There is indeed a chance that Bitcoin will play a growing role in Russia in the coming years. Especially in the field of international trade, because Russia suffers from the sanctions within the traditional payment system.