Bitcoin Hating Bank of Russia Shows Love for Blockchain

As if anyone needed another example, even those who are most opposed to bitcoin can no longer deny the usefulness of the innovative technology behind it. While various sections of the Russian government and financial establishment have taken a very harsh anti-bitcoin stance recently, such as the Russian Ministry of Finance reportedly proposing four years of hard labor for the crime of using cryptocurrencies, the country's top regulator now shows interest in Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term.

The Bank of Russia issued a communique on Sunday saying it will be engaged in the analysis and evaluation of possibilities regarding the application of new financial technologies including blockchain. To this end, the Russian Central Bank has established a working group on the analysis of advanced technologies and innovations in the financial market. Among the priority issues is the study of distributed ledger technologies, as well as new developments in mobile, Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term, and other areas.

"The development of modern financial markets is inseparable from the development of financial technology," said Deputy Chairman of the Bank of Russia Olga Skorobogatov, who leads the group. "Financial services quickly digitizes new business models and ecosystems, and market participants, changing the behavior of consumers of financial services. High-tech financial markets need a high-tech regulator, which must also thoroughly understand the new financial processes and technologies and their possible application in practice," she added.

The Bank of Russia's working group plans to hold regular meetings with representatives of banks, self-regulatory organizations and other financial market participants to discuss various aspects of the use of new financial technologies.

In December 2015 it was reported that Russia’s largest bank, Sberbank, wants to join the R3 global consortium of banks collaboratively developing blockchain technology to streamline payments and securities trades.