Russian Agricultural Bank Eyes Crypto for Grain Trade Settlements

The Russian Agricultural Bank is accountable to European Union (EU) and U.S. sanctions considering that 2022. The Russian Agricultural Bank is considering the use of crypto-based tools as an alternative to traditional settlement methods for exporting more than 49.5 million tonnes of grain. The Agricultural Bank of Russia, a state-owned organization that provides credit to agricultural firms, has indicated the potential use of crypto for grain settlements.

The Russian Agricultural Bank is preparing for an escalation of some measures, positioning crypto as a trustworthy source of liquidity for grain purchases. This move aims to integrate the commodities market with digital assets, paving the way for broader adoption. Russia has been actively exploring crypto adoption, with the Agricultural Bank of Russia exploring the possibility of utilizing cryptocurrency for grain payments. Irina Zhachkina, the First Deputy Chief Executive Officer of the bank, mentioned this initiative at the Russian Grain Forum in Sochi, emphasizing the trust in cryptocurrencies as a convenient payment alternative.

The removal of sanctions against the Russian Agricultural Bank is crucial for finalizing a proposed Black Sea deal, facilitating the safe transit of Ukrainian grain through shared territories. These sanctions, including exclusion from SWIFT and asset freezes in the EU, have hindered the bank’s financial operations. The agricultural bank is anticipating potential further sanctions, hence considering crypto as a reliable option for liquidity in grain transactions.

This strategic shift could open up opportunities in the agricultural commodities market for crypto assets, positioning Russia as a key player in virtual asset settlements for the upcoming harvest. With expectations of exporting 49.5 million tonnes of grain, including 42 million tonnes of wheat, Russia’s dominance in grain production makes this move significant for the industry.

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