The central bank of Russia has successfully completed a distributed ledger trial.
The Bank of Russia, the country’s central bank, has developed a technical prototype called ‘Masterchain’. The prototype is based on distributed ledger or blockchain technology for the Russian financial market, an announcement by the bank revealed yesterday.
The ‘Masterchain’, as explained by the central bank, is ‘a networking tool’ for participating members using blockchain technology. The platform enables for “prompt confirmation of data actuality” to a transacting customer. The innovation also makes instant communication possible between counterparties among the platform, while assuring confidence in financial transactions.
The blockchain platform prototype was developed for financial messaging between banks in the Russian financial system and was put to the test. The announcement added:
“The biggest banks of Russia have made the first test transactions in the Masterchain”.
Participating financial institutions include Sberbank, Alfa Bank and Tinkoff Bank (which confirmed usage of Ethereum’s technology) and Russian payments operator, Qiwi Group.
Russia’s Blockchain Embrace
For a country that has seen its authorities and regulators take a notably hardline stance against bitcoin, the cryptocurrency’s underlying technology – the blockchain – has seen favorability.
In February 2016, the Bank of Russia established a ‘working group’ to study blockchain technology, in an effort to understand and look for the viability of its real-world applications in the Russian financial market.
By April, a report revealed that the Central Bank was considering allowing banks to record and store data of all their transactions on a blockchain.
Come July 2016, the Bank of Russia had planned and setup a coalition of banks that counted as Russia’s first blockchain consortium.