Pawnshops want to accept cryptocurrency as collateral

The company Neolombard has submitted a proposal to the Central Bank of Russia allowing loans secured by cryptocurrency, on par with gold and other valuables.

This will allow owners of digital assets to obtain funds without selling them. If the borrower fails to repay the debt on time, the cryptocurrency can be liquidated to cover the obligation.

Digital Assets as Collateral

The Central Bank confirmed receipt of the initiative, but current legislation does not yet permit implementation of such a scheme.