Russian banks are forming a consortium based on Ethereum to make payments faster and safer. The banks, inclusing VTB Group and Sberbank PJSC use a
Russian banks are forming a consortium based on Ethereum to make payments faster and safer.
The banks, inclusing VTB Group and Sberbank PJSC use a distributed ledger called Masterchain that relies on a modified Ethereum protocol. The ledger complies with the country`s security standards, as the FinTech Association stated, according to a report published in cryptocoinnews.com.
“Russia’s not a very developed banking market.”, as Vyacheslav Putilovsky, an analyst at Moscow-based rating company Expert RA, told Bloomberg (bloomberg.com).
“The top banks here are betting that they can catch up and maybe even overtake their western competitors in their adaptation of this type of technology.”, he added.
Citing the whitepaper, Bloomberg wrote that Masterchain may also let the Russian banks search through each other`s database of blacklisted clients to reduce fraud risks and expenses.
A built-in virtual currency named “gas” will be used to reward user and miners for validating transactions within Masterchain, as the article explained, while quoting the white paper.
Russia warms towards digital currencies?
According to Bloomberg, Vladimir Putin has previously expressed interest in Ethereum, the second biggest cryptocurrency after bitcoin.
“The digital economy isn’t a separate industry, it’s essentially the foundation for creating brand new business models.”, as Putin said at the the St.Petersburg Economic Forum that took place in June.
This may be signaling a shift in the government`s position on cryptocurrency, as the cryptocoinnews.com speculated.
Last year, the Russian Finance Minstry threatened to make the use of digital currencies illegal.
However, the central bank`s position on cryptocurrencies is still not clear, as Putilovsky said in an interview with Bloomberg.