Sberbank of Russia

03/25/2021 | Press release | Distributed by Public on 03/25/2021 08:45

Targeted credit, letters of credit, and banking support: Sber announces primary applications of digital financial assets

Today Deputy Chairman of the Sber Executive Board Anatoly Popov addressed FinNext 2021, the ninth FinNext financial innovation forum, with a report on central bank digital currencies and commercial bank digital financial assets (DFA). He defined the primary applications of DFA, available to corporate and retail clients after the launch of Sber's blockchain platform:

  • Letters of credit for real estate transactions. When using DFA and smart contracts, the client can determine the disclosure terms for a letter of credit without requiring a visit to the bank or incurring current transaction fees.
  • Targeted credit for businesses. In Q2 2020 a number of state programs supporting enterprises during the pandemic were launched. Specifically, zero- and two-percent interest loans were issued to support employment. Functional tokenization tools would enable the use of smart contracts for payroll expenditures. Currently monitoring is manual.
  • Banking support. When implementing investment contracts, banks must rely on employees and AI to monitor spending. Using DFA and smart contracts would allow banks to automate the process 24/7.
  • Expenditures on government contracts. Through blockchain contracts, public procurers will be able to 'dye' digital money and transfer it to contractors under specific expense items. This would reduce the risk of misuse of funds and increase contractor work transparency.

'We welcome the decision of the Bank of Russia to launch a digital ruble. The simultaneous launch of cashless token rubles by commercial banks will provide a broad range of clients with the opportunity to use the aforementioned new services. Not only will this allow banks to reduce expenses and transaction fees, it will also provide participants of blockchain transactions with quick, convenient, and efficient ways to address challenges.'

Anatoly Popov

Deputy Chairman of the Executive Board, Sberbank