Russia’s Biggest Bank Pilots Money Transfer On The IBM Blockchain

Russia’s Biggest Bank Pilots Money Transfer On The IBM Blockchain

Sberbank, one of the biggest banks in Russia, has revolutionized the Russian banking industry by piloting the first money transaction on an IBM blockchain.

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Sberbank has revolutionized the Russian banking industry by piloting the first money transaction on a blockchain.

Sberbank is ranked as Russia’s biggest bank in terms of assets. They have made it possible for real-time money transaction over a blockchain built by IBM software, Hyperledger Fabric. They made a transaction involving an unknown amount of money from a paying end to a receiving end of separate banks. Sberbank IT system facilitated the transaction by use of a web application to help bank customers track their transfers.

In July, CNN reported that the Linux Foundation-led open-source Hyperledger Blockchain fraternity officially Hyperledger Fabric 1.0. Their first blockchain software that is production ready.

Stella Kudachkina, Sberbank’s Managing Director, said that the blockchain solution that Sberbank created allowed them to be the first to put to test money transfer using IBM Blockchain technology and hence revolutionizing the banking industry in Russia.

Sberbank also recognized and listed active partners who were involved in piloting the payment transaction, a hint at blockchain payment in the future. The partners’ list included MegaLabs, an IT solution provider based in Moscow; MegaFon, the second largest Russian phone operators; IBM and; a private Russian bank.

Primarily, Alpha bank and Sberbank accommodated the blockchain nodes with the thought of developing a form of settlement function that would work in the favor of these two banks.

The Sberbank administrative added:

The benefit of utilizing this technology when dealing with settlements is how fast the transfers are made: Once the money is sent, a record of the transaction is made on the recipient’s account at about the same time. Hence making it real-time in comparison with the traditional transfer systems.

The announcement by Sberbank has come within months of Sberbank joining Enterprise Ethereum Alliance (EEA). It is a consortium of organizations, governments, and startups working towards the aim of leveraging open-source Ethereum Blockchain Technology for organizational solutions.

Herman Gref, the Chief Executive of Sberbank, had earlier this year mentioned that blockchain technology will be seen in commercial applications in Russia by 2019.

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