Russian Bank Issues First Crypto-Backed Loan

Expobank (Courtesy: Twitter)
Expobank (Courtesy: Twitter)

Russia is on a role as far as cryptocurrency is concerned. After president Vladimir Putin signed a bond to give cryptocurrency a legal status, it is now further taking important steps.

A commercial bank in the country Expobank has now issued the country’s first crypto-backed personal loan.

According to Russian business daily Kommersant, the loan, backed by Waves tokens, was issued to businessman Mikhail Uspensky. Waves founder Sasha Ivanov confirmed the news in a tweet.

However, the value was not disclosed by the bank. Expobank’s head of legal department Tanzila Yandieva told Kommersant that the loan is a “precedent-setting for both the legal and banking communities” in Russia.

The bank reportedly consulted lawyers and crypto experts for the deal and concluded that Waves tokens are “other property” and not payment tokens. The use of cryptocurrencies for payment is set to be banned in Russia starting next year.