Russian Central Bank to Apply Blockchain Tech

News and Analysis

Russian authorities are traditionally cautious when it comes to cryptocurrencies, as they suspect virtual money may be used to finance terrorist organizations and possible rebellous activities. For that reason, the government continuously removes any possibility of anonymity in financial transactions. However, the Central Bank of Russia actively researches new technologies, including blockchain.

As reported by, Sergey Shevtsov, first deputy chairman of the Bank of Russia, stated at the 7th Ural Forum:

“There are some ideas as to how to use it at stocks market, there are ideas of monitoring real estate registrars, and then to use it in electronic mortgage certificates. We’ve started this project. The technology itself isn’t good or bad, it’s just technology. It’s either applicable in some financial market areas, or not, if it’s not fast enough. For instance, you can’t transfer exchange trades on blockchain, as it’s not a fast technology.”

However, traditionally to high-ranking Russian speakers, he stressed that blockchain and cryptocurrencies should be considered separately.

“As for cryptocurrencies, we go on a premise that they’re not currencies,” Shevtsov said.

He also added that, in accordance with the Russian constitution, “Bank of Russia is a monopoly issuer of money within the Russian Federation”.

Currently, the authorities work at imposing stricter controls over online payments and crowdfunding. Government entities are compiling a list of operations that may be considered questionable.

Meanwhile, even Russian experts do not believe Bitcoin can provide real anonymity. Speaking to Russian publication Davydov Index, Konstantin Kornischenko, CEO at Moscow Central Stock Exchange, and Head of Stock Markets and Financial Engineering Chair at Russian Presidential Academy of National Economy and Public Administration, commented:

“I cannot possibly name an operation enabling someone to send money in an anonymous manner. Hypothetically speaking, it might be an operation involving bitcoins, which require no identification. However, bitcoin isn’t money. When you attempt to convert it into money you will have to identify yourself. The banking control has been there for a long time, and it’s very strict. One may find evidences of that in the Central Bank’s papers.”

Follow ForkLog on Twitter and Facebook!

Found a typo? Highlight text and press CTRL+ENTER

Subscribe to our Newsletter


Related posts

Tags: , ,