Bank of Russia Concedes Using Blockchain Technology to Issue Smart Bonds

News and Analysis

April 12, in the course of Exchange Forum 2016 in Moscow, head of Bank of Russia’s department for financial market development Yelena Chaikovskaya told that the Central Bank was watching the blockchain technology closely, and the attention was rather positive. Moreover, she said, blockchain may be used in the Central Bank’s project for bondization in implementing of so-called smart bonds. They don’t employ traditional accounting system of rights, do not require any back offices, and cut expenses.

“The greatest deficiency on today’s financial markets is trust. Blockchain seems a magic pill to solve the crisis. Whether it’s true or not, only time will tell. Bank of Russia actively researches the technology, mostly in regard of closed or regulated systems providing an acceptable level of risk to participants,” she said.

As for blockchain’s legal status in Russia, Chaikovskaya reminded that 2016 is expected to be the year of blockchain. She noted that she was excited that “the very word [blockchain] shook off negative connotations linking it to bitcoin.” She added: “Now it is an independent term without any direct relation to cryptocurrencies.”

Notably, blockchain has become one of the crucial topics of discussion at the Exchange Forum. The attendees used exclusively positive wording to describe the technology. Now, Russian officials’ positive attitude towards blockchain may be considered a well-established fact.

As ForkLog reported earlier, Russian Central Bank claimed it was planning to permit financial organizations to use blockchain in order to store transaction data. As early as September 2015, the Bank of Russia has established a dedicated working group to study blockchain technology and its area of applicability. However, recent news suggest that legalization of Bitcoin and other cryptocurrencies in Russia is probably off the table.

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