For the first time, a Russian bank has set a new milestone and issued a loan secured by Cryptocurrency despite various controversies doing rounds over adopting the digital currency. Expobank issued a crypto backed loan to businessman Mikhail Uspensky that made use of ‘waves’ currency as collateral.
Cryptocurrencies like waves and bitcoin are still not wholly legalized in Russia, the Russian President, Vladimir Putin issued a law to allow buying and selling Cryptocurrency. Still, the digital currency is not considered as a legal tender. If any other cryptocurrency asset is used as collateral will be considered as “other property.”
Expobank stated,
EDR law firm’s managing partner, Alexander Zhuravlyov, advised the bank that the crypto-assets can be used as collateral and can be exchanged for the real currency. Zhuravlyov believes that digital assets can be widely used and applied in real life as well.
Expobank is situated in Moscow and owned by Igor Kim, an economist; Barclays previously controlled the bank.