Sber revealed its intentions around developing its own stablecoin back in August. But this is the first time JP Morgan – America’s largest bank by assets – has announced its involvement in the project. CEO Herman Gref says the it will begin as “an experiment” next year. But it hasn’t confirmed whether it will carry it on beyond a pilot stage.
Russia announced its new cryptocurrency law this year, set to come into effect in January 2021 ahead of Sber’s pilot. Known as On Digital Financial Assets (DFA), the law passed in July, gives legal status to cryptocurrency. But it prohibits its use as a means of payment. This means Russian residents can’t transact in bitcoin or any other cryptocurrency. But it will legalise crypto-to-crypto trading platforms, and will allow firms to purchase and sell crypto, as well as lend in crypto. Alongside this law, the Central Bank of Russia drew up a draft around issuing digital rubles earlier this year. It calls it “a third form of money”.