It was announced last week that two large Russian banks are building cryptocurrency portfolios for their biggest clients. Under the supervision of Bank of Russia, companies are beginning to offer customers and clients shares in a brand new fund that trades in six of the most popular cryptocurrencies available to trade on the market today. According to the article, Sberbank – who process paychecks for governmental employees – will also help in the introduction of cryptocurrency into the financial movements of the major banks, as well as a number of private companies.
A representative for the company announced that this move to cryptocurrency would increase the transparency in the bank’s dealings with financial investment, especially when concerning digital investment. Such investment is a relatively new contender in financial trading, but Sberbank hopes that its new plans to build these portfolios will help present them as a legitimate investment strategy for the future.
The portfolio is set to include the six biggest cryptocurrencies in the world, which will be revised every four months to ensure the efficiency of this challenging new investment.
Russia has been planning to move into the cryptocurrency market for a few years now, particularly having seen the success in other territories like Japan, where laws and regulations have been passed allowing digital currency to be viewed as a legitimate method of payment. However, many believe that this move from the large banks to allow cryptocurrency is simply to benefit the wealthiest in the country, particularly those who have the disposable capital to invest in an arguably very risky venture. Only once they have taken the cryptocurrency they require, it may be opened up to general investors at the lower end of the market.
Cryptocurrency is becoming an increasingly popular financial investment, despite being seen as unstable and risky in the past. Bitcoin, in particular, has been gaining much media attention over the last few months. Whether it’ll have the hoped-for effect on the financial sector remains to be seen, but Russia’s de-regulation might just be the first step towards its legitimacy.