Russian Agricultural Bank Eyes Crypto for Grain Trade Settlements

• The Russian Agricultural Bank is liable to European Union (EU) and U.S. sanctions since 2022. 
• The agricultural bank is getting ready for an escalation of some measures, placing crypto as a trustable source of liquidity. 

The Russian Agricultural Bank is thinking to keep crypto-based tools as an alternative to traditional settlement methods for exporting more than 49.5 million tonnes of grain. This step will help in amalgamating commodities market to digital assets, introducing this use case. 

Russia is very active in terms of crypto adoption. The Agricultural Bank of Russia, a state-owned institution that offers credit to agricultural firms, has signaled the potential use of crypto for grain settlements. 

The First Deputy Chief Executive Officer of the bank, Irina Zhachkina mentioned about this measure at the time of Russian Grain Forum that managed to captivate 1,000 participants in Sochi. 

She mentioned that we have a trust in cryptocurrencies that it can be a convenient alternative tool and at the current scenario, we together with the Bank of Russia and all the stakeholders are looking for the opportunity of leveraging cryptocurrency tools for payments in grain trading. 

The Removal of The Sanctions

The Russian Agricultural Bank is liable to European Union (EU) and U.S. sanctions since 2022. This consisted of the exclusion of the bank from the SWIFT international payment network, a hold on all its assets in the EU, and a prohibition on getting financial services from European institutions. 

Removing all these sanctions was mandatory to conclude a proposed BlackSea deal, which would permit Ukrainian grain safe passage across joint territories. The Sanctions have even touched vessels carrying Russian grain to other markets, having more than 79 ships prohibited from entering European ports and getting services, as per the statements of the central bank. 

Some speculations states that the agricultural bank is getting ready for an escalation of these measures, placing crypto as a trustable source of liquidity for grain purchases. The step will probably open the doors of the agricultural commodities market for crypto, setting Russia as a counterparty for virtual assets settlements for the next harvest. 

The next harvest is anticipated to touch 49.5 million tonnes of grain in exports and 42 million tonnes of wheat, as Russia holds the first position in the production of this grain. 

Highlighted Crypto News Today: 

Bittensor (TAO) Slips 7%; Are Bears Gearing Up for a Bigger Move?