Russian Government Considers Blockchain for Improving National Payment System

Russian Government Considers Blockchain for Improving National Payment System

Blockchain is a new technology which is extremely transparent and helps to store a huge volume of data. Many top organizations are planning to impleme

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Blockchain is a new technology which is extremely transparent and helps to store a huge volume of data. Many top organizations are planning to implement it. Recently, the Association of Financial Innovation ( AFI ), drafted a proposal seeking for improvements in the payment system of Russia. The Russian Government is carefully monitoring the proposal.

The proposal mainly calls for introducing the Blockchain technology, which will make it much easier to identify clients. Russia is cautiously monitoring the possibilities of applying the Blockchain technology and the benefits it offers to them. As per a Russian publication, application of the blockchain technology will significantly increase the number of transactions.

The possible advantages that a Blockchain based client identification system will offer to Russian Government are:

1. The main benefit of this technology is the transparency which it offers. They will be able to store a huge amount of data as well.

2. Another good thing about Blockchain is the fact that it is extremely secure. It will be possible to securely transfer data to anyone present in the network. Data breach is a major concern of all countries. If anyone gets access to a country’s database, then it will lead to an emergency like situation. But since Blockchain is decentralized in nature, it is almost possible for someone to hack into it.

Implementation Process: As per reports, Russia has made a well thought out plan regarding the implementation of Blockchain. Just like most other monetary systems, the government will have some level of control over it. However, Russia has to be careful and consider the difficulties which may arise during implementation. Even popular platforms like Ethereum has struggled during the implementation period. Hence, it will be better if Russia takes the help of a consortium before implementing Blockchain. They also need a very experienced and skilled development team.

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