Russian private bank Sberbank acquires 5.000 ATMs with blockchain technology

Sberbank, Russia's largest bank, is buying more ATMsno contact» that run on blockchain, according to local news agency Izvestia . Interestingly, the move comes amid a proposed law to penalize to people and companies that use Bitcoin and cryptocurrencies in financial transactions.

To avoid confusion, Sberbank ATMs have nothing to do with cryptocurrencies, as they do not act like BTMs. The banking giant aims to reduce customers' need for physical contact with their bank cards amid the COVID-19 pandemic. It is also unclear if they plan to introduce Bitcoin and cryptocurrencies to their services in the future. Which would be highly feasible if they already have an adequate infrastructure for this purpose.

Blockchain to move fiat

Blockchain-powered devices will support various contactless payment systems, including Google Pay, Apple Pay, Samsung Pay, Mir Pay, and Huawei Pay. The ATMs are also equipped with pattern recognition functionality and are protected by anti-vandalism systems. In total, Sberbank plans to buy 5.000 ATMs in the framework of a tender worth more than $ 108 million. Consequently, each machine will cost around $ 22.000.

While it's no secret that Sberbank is a huge fan of blockchain-related innovation. It is not clear how exactly the new ATMs take advantage of the technology. About two years ago, the bank launched a blockchain lab to create and test the technology for various tasks. For example, in the fall of last year, Sberbank was turned into the first Russian bank to patent a system that converts the repository into smart contracts on the blockchain. Today, Sberbank has around 75.000 ATMs across Russia, of which 55.000 are fully functional.

Sberbank's move is showing that the Russian state does not want to stay away from blockchain adoption, as the bank is owned by the government. On the other hand, the country seems to have a problem with the free use of cryptocurrencies, including Bitcoin. At the end of last week, the Russian news agency RBK said the bill on crypto. Which has been stagnant for over two years, it could go through some amendments seeking the prohibition of the issuance of cryptocurrencies and their operations on Russian territory.