Pawnshops Ask Central Bank to Allow Loans Secured by Bitcoin

Pawnshops in Russia, particularly "Neolombard," have appealed to the Bank of Russia to allow the issuance of loans secured by Bitcoin. The Central Bank confirmed receipt of the request but indicated that current legislation does not permit pawnshops to issue loans while simultaneously dealing with digital currencies. "Neolombard" is attempting to advance this idea for the third time, with the first attempt made in 2023. In 2026, the company estimated the potential market for crypto-collateral loans at 3 trillion rubles. Meanwhile, some banks have begun testing loans backed by cryptocurrency, but changes in the law are necessary for a mass launch in pawnshops. It is assumed that the loan model will be similar to traditional loans: the client transfers cryptocurrency as collateral and receives money, and if obligations are not fulfilled, the pawnshop can liquidate the collateral. The main risks are associated with the volatility of cryptocurrency and operational issues, such as the loss of keys.

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