Russia's Central Bank Officially Announces Blockchain ‘Work Group’

THELOGICALINDIAN - Despite the perceived abhorrence appear Bitcoin in Russia the countrys axial coffer has aloof appear that it has clearly accustomed a new assignment accumulation to abstraction the agenda currencys basal blockchain technology and its abeyant appliance infinancial markets

Also read: BNP Paribas: Last Bank to Utter ‘Bitcoin’ By Name

Bank of Russia Forms Blockchain ‘Work Group’

In a press release issued by the Coffer of Russia on February 28, the country’s axial coffer appears to accept accepted its favorable attitude appear Bitcoin, or at atomic its basal blockchain technology.

The advertisement reads (translated from Russian):

The assignment accumulation aims to authority approved affairs with coffer heads, self-regulated organizations and added banking bazaar participants. The accumulation will altercate assorted aspects of applying new banking technologies such as agenda bill and the blockchain to improve Russia’s banking markets.

“The development of a avant-garde banking bazaar is inseparable from the development of banking technologies,” acclaimed the arch of the anew formed assignment accumulation and Deputy Chairperson of Russia’s Central Bank, Olga Skorobogatova. “Financial casework are bound acceptable digitized with the new business models, bazaar ecosystems and alteration behavior of consumers of banking services. A hi-tech banking bazaar needs a hi-tech regulator that charge thoroughly accept the abstraction abaft these new banking technologies and their applied applications.”

One coffer that’s all but assertive to be allotment of this accumulation is Sberbank, Russia’s better bank. In December of 2015, the coffer announced its absorption in developing “blockchain-powered banking services” as able-bodied as abutting the R3 bunch of all-around banks belief the technology alongside Goldman Sachs, JP Morgan, Credit Suisse, and abounding others.

A Looming Battle

But while it appears that the government is abating appear Bitcoin, Russia’s Ministry of Finance, in particular, has been evidently hostile appear agenda currency, apropos to it as a “money surrogate” and facilitator of money bed-making and agitation financing. The Ministry has additionally drafted a contempo bill that aims to acquaint acrid penalties and imprisonment for issuing, application and alike “disseminating” advice on cryptocurrencies.

This analysis could advance to a potentially cardinal action in the State Duma as proponents of addition are set to go arch to arch with those benign a clampdown. However, the Ministry of Finance’s case may be louder than its chaw back Bitcoin’s decentralized attributes ensures its animation to actuality shut down, i.e. Bitcoin has no axial authority to target.

[Editor’s note: It is currently not actionable to use Bitcoin in Russia]

Moreover, because the contempo advance in Bitcoin trading aggregate in the country (see blueprint below) adjoin the accomplishments of a free-falling Ruble, absorption from above Russian banks, and the anew created blockchain assignment group, the course may be axis in favor of those absent to accompany Russia’s banking markets into the avant-garde era.