Banks of Belarus will start issuing tokens to raise capital

The National Bank of Belarus intends to allow financial institutions to use their own digital assets to attract capital, especially foreign.

Since the regulator has not yet fully studiedpotential risks and control mechanisms, only 12 banks will be able to take part in the pilot project. To run the experiment, you need a presidential decree.

Belarus already has a legislative framework for regulating the  crypto industry, crowdfunding and stimulating innovation in the field of fintech, so nowcentral bank wants to evaluate potentialcountry's banking system in the direction of digital transformation. First of all, the regulator will analyze the ability of financial institutions to raise funds (primarily from non-residents) through the placement of tokens.

Banks will be able to sell their digital assets forforeign currency, but they will be prohibited from working with cryptocurrencies. Participation in the experiment is expected to be limited to ten percent of regulatory capital and will run from 2021 to 2024. During its implementation, the National Bank will be able to establish other features of transactions with tokens.

Let us remind you that recently the central bank of Saudi Arabia began transferring funds to local banks via blockchain.

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