Russia to Implement Blockchain in State Governance

News and Analysis

Gleb Nikitin, the governor of Nizhny Novgorod Oblast in Russia stated that the region’s residents will become the country’s first to test the capabilities of blockchain tech in state governance.

According to Nikitin, people will be able to distribute their own taxes amongst the categories of budgetary expenditures via Gorod N, a special app on Vostok platform. The solution is also capable of verifying identities of the residents thanks to its integration with the federal e-governance service Gosuslugi (Public Services).

“We are actively researching best global practices of using blockchain tech in state governance. Thanks to the cutting-edge technology our people will be able to engage in managing their city more efficiently via so-called participatory budgeting. Blockchain will allow us to ensure maximum transparency and honesty for the relationship between a citizen and the state. It’s an opportunity to build a relationship of the equal when a citizen can see his or her contribution to the common cause, and can demand that the government worked better. We hope other regions will feel positive about that experience as well,” Mr. Nikitin stated.

The government of the oblast plans to launch the system’s pilot during the budgeting process in 2020. RosTech’s National Center for Informatization is expected to ensure the integration of blockchain in other regions afterwards.

The Gorod N app was developed to showcase the applicability of blockchain in state and municipal offices as part of the agreement between the government of Nizhny Novgorod Oblast and Vostok platform.

Last year, RosTech and Vostok signed an agreement on cooperation that sought to integrate the distributed ledger technology in the infrastructure of Russia’s planned digital economy.

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