The Central Bank of Russia Expects Blockchain-based Financial Systems to Emerge by 2018

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The Bank of Russia believes that emergence of blockchain-based systems for financial markets is very likely to happen in 2017 or 2018.

Olga Skorobogatova, deputy chairwoman of Russian Central Bank, stated during her meeting with representatives for commercial banks:

“From the regulation and financial market protection points of view, the technology will probably be used in so-called ‘closed’ way, so that sender and receiver could be identified, so that there would be rules that market participants share and understand. We will see real-life instances of using the system in 2017 or 2018.”

She stressed that ‘open’ functioning of such systems, like it happens in bitcoin’s case, does not meet the regulator’s requirements.

“An open technology that bitcoin uses, for instance, implies total anonymity and validation that takes up to an hour,” Skorobogatova said.

A working group for blockchain research has been formed in the Bank of Russia last year. Sberbank, Russia’s biggest state-owned bank, also believes the blockchain technology is very promising. The bank’s chairman German Gref and former minister for finance Alexei Kudrin recently stated that it may change public services in Russia.

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