Pawnshops want to issue loans against cryptocurrency collateral

Russian pawnshops plan to introduce a service for issuing loans against cryptocurrency collateral. The Neolombard company has submitted the corresponding proposal to the Central Bank of Russia.

The proposal assumes equal status for digital assets with gold and other traditional values when assessing collateral.

Cryptocurrency owners will be able to obtain financing without resorting to selling their assets. In case of late payment, the collateral property will be sold to repay the debt.

The Central Bank confirmed receipt of the initiative, but pointed out legal restrictions.

Current Russian legislation does not yet allow implementing the proposed scheme for pawnshops working with cryptocurrency.