Russia’s Central Bank has again reiterated its commitment to exploring the opportunities that blockchain technology brings throughout a variety of applications. Noting its potential in payment systems, documentation verification and interbank transactions within the financial industry, the benefits of security and accountability of the technology could provide improved platforms for these services. Additionally, the Central Bank also noted that the idea of a Central Bank issued digital currency is still recognized as something that could be of benefit to the Russian people, although there are still issues to overcome for that to be possible.
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Russia is not the first country you think of as cryptocurrency friendly, with several legislative moves to create barriers to use of digital currencies by its citizens over the last couple of years. However, the Russian Central Bank has made several announcements that it has been looking into the potential of blockchain technology for its own use and that has continued recently.
Areas of interest for the Central Bank are actually quite varied, with the recent announcement continuing to emphasize the area of research as the various implementations of blockchain within the financial industry, to add security and efficiency to payment systems and other kinds of fiscal transactions. Additionally, using blockchain for document verification and other security related features is also something they are actively researching. Regulatory bodies within Russia are encouraging this development, believing that blockchain technology and its inbuilt safeguards offers the best platform for various verification and payment solutions that prevent the increasing security issues currently being faced as the traditional financial system comes to terms with the digital world.
Another area that is still also under consideration is the creation of Russia’s own digital currency by the Central Bank, a choice that is mirrored by the Central bank of the United Kingdom. This is an interesting concept, that merges fiat systems with cryptocurrency in a way that will perhaps bring wider acknowledgement of the benefits of the technology, but also has the backing of the traditional government establishment for peace of mind of new users.
While all the proposals offer good news for in the industry, the recent statement also noted that some areas still need work for successful implementation, speed of network and the risks of databases being unsynchronized being one in particular they are concerned with. It is always interesting to see views on the potential of blockchain and the cryptocurrency industry itself from various perspectives, the Russian opinion is particularly interesting given previous concern over Bitcoin. The planned research and initiatives discussed in the recent announcement reinforce the viability and adaptability of blockchain technology that is being acknowledged right across the world and does show that the future for the industry should be bright.