The Russian Banking system has come to realize the importance of blockchain technology. In order to keep with the latest developments in the segment, they have joined forces to start their own research and development into Bitcoin’s underlying technology.
The Russian banking consortium for blockchain technology is expected to be designed along the lines of the R3CEV led international banking consortium. However, unlike R3CEV’s group, the Russian banking consortium will be open only for banks and financial institutions in the country, at least in the beginning.
Some of the banks interested in joining the Russian banking consortium for blockchain technology are QIWI Group, Accenture, MDM Bank, Bank Otkritie and Tinkoff Bank. According to reports, these banks are said to have announced their intentions recently during the XXV International Financial Congress in St Petersburg.
In a statement, the director of innovations at the Bank Otkritie Alexey Blagirev was quoted by a publication saying-
“Collaboration with major players in the banking sector and the participation of the regulator will allow us to create and test new approaches, such as joint settlements, simplifying the customer identification procedures.”
The Russian government and financial regulator have been against the use of bitcoin and other digital currencies in the country. There is also a new law in place which makes it a crime to convert any digital currency to ruble, the Russian national tender. Anyone caught attempting to do so can be subjected to up to 4 years of imprisonment along with a fine.
The Central Bank of Russia has been working on few major projects to improve the country’s banking sector. One among them is the new information sharing platform, announced recently Elvira Nabiullina. With this platform, the regulators and central bank officials will be able to exchange news about latest trends in the fintech sector and exchange ideas to further improve the ecosystem.
The Russian Banking system is looking at some upgrades soon.