Russian commercial bank Expobank has issued the country’s first crypto-backed personal loan. Until now, no other bank based in Russia has given crypto-backed loans. Although the loan amount given by Expobank is not disclosed, it is known that the loan was given over Waves.
Kommersant, the leading Russian newspaper in business and finance, announced in a news published on Wednesday that it was the first in Russia and that Expobank has given cryptocurrency loans. Waves was used as collateral for the loan that Expobank gave to businessperson Mikhail Upensky. Waves’ founder Sasha Ivanov confirmed this information with retweets on his social media account.
Although the value of the loan is not specified, Tanzila Yandieva, head of the Expobank legal department, told Kommersant; He said that this move sets a precedent both in legal terms and in the banking sector.
Crypto Coins are in the “Other Assets” Class
The bank consulted with legal advisors and digital money experts before making a precedent move. As a result of these negotiations, it was decided that Waves, which was given as a loan, would be subject to the category of “other assets” rather than the “payment coin” category. One of the reasons why Waves is not classified as a payment coin is that next year the use of cryptocurrencies as a payment method will be banned within the borders of Russia.
Last month, Russian President Vladimir Putin signed a draft law banning the use of cryptocurrencies as a means of payment. The bill is scheduled to come into effect at the beginning of 2021.
What is Waves (WAVES)?
Waves, which is in the top 50 in the list of most valuable crypto currencies, is a digital asset that can be considered old compared to other coins in the market. Waves, which entered the market in 2016, has increased its value by more than 110% in the last week and is now trading at the $ 4 band. Waves’ trade volume is approximately 226 million dollars and its market value is over 403 million dollars.
Waves explains its purpose is not to replace Bitcoin, but to facilitate the transfer of cryptocurrencies, including Bitcoin, and other traditional assets such as gold and dollars, with a decentralized approach. The founders of Waves define the coin as a platform that aims to trade and store valuable assets in an easy and reliable way.