Russia’s Central Bank Completes Pilot Test of Blockchain

Russia’s Central Bank Completes Pilot Test of Blockchain Technology

Russia’s central bank has finally completed the experimental test of blockchain technology. Thus, it seems that Russia has outperformed China in this regard, especially as the latter has doubled its views on the future of blockchain technology.

In December 2019, the Central Bank of the Russian Federation proposed that the initiative would be part of the legislative sandbox. Yet, it managed to complete the pilot test in a short period.

The platform will be used to issue and move “digital rights”. Accordingly, the country can digitize securities, goods and services.

Interestingly, the move will help Russia to lure new capital and establish a new avenue for investment. In addition, the platform will help companies to issue their tokens.

Ivan Ban, director of financial technologies, said:

“An important detail of the service is the use of hybrid tokens, which make it easy to adapt to the needs of business and consumers and provide flexible solutions to attract investment.”

“Based on the results of the piloting, the Bank of Russia proposed to include in the draft federal law “On Digital Financial Assets” the provisions necessary for the introduction and development of such decisions in the emerging digital assets market,” he added.

In addition, Russia became almost ready with the draft law “On Digital Financial Assets”. Once approved, it will pave the way for this platform to carry out its activities.

Governor worried about cryptocurrencies

Earlier, Cryptolydian reported that Russia’s central bank gave the green light for local companies to test stablecoins.

Also, Elvira Nabiullina, governor of the central bank, said her country has launched a regulatory sandbox through which local companies can test stablecoins.

However, Nabiullina had previously expressed worries about cryptocurrencies, saying that they would contradict the financial sovereignty of central banks.

The bank is studying the possibility of issuing its central bank digital currency (CBDC). However, it seeks to understand the benefits of this currency in light of the experience of other countries around the world.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.