Russian c-bank names DLT among key fintech areas for 2018-2020

Maria Nikolova

The Bank aims to develop a DLT-based platform for the launch of new financial services and products.

The Central Bank of Russia has named artificial intelligence, robo-advisory and distributed ledger technologies among the financial technologies with the biggest potential for 2018-2020. In a document, outlining the Bank’s view on the key directions of fintech development, the regulator said it planned to transform the Russian digital environment for financial services via the development of new infrastructure, including a platform-marketplace for financial products and services, a platform for the registration of financial transactions and a platform based on DLT.

The platform based on DLT aims to secure the necessary infrastructure for the creation and market launch of financial products and services related to DLT. The platform will represent a system for storing and exchanging financial information. The system will use certified Russian cryptography, KYC, and will support various network configuration (open, closed, hybrid).

Let’s note that in the face of the Bank of Russia’s cautious position with regard to cryptocurrencies, the regulator continues to be open towards blockchain. This stance is echoed by other Russian institutions. Russia’s prime minister Dmitry Medvedev, for instance, has been a proponent of blockchain.

The stringent attitude with regard to cryptocurrencies remains. In today’s document, the Bank of Russia stresses that the rapid development of new fintech solutions has also triggered a rise in the risks for their users, including the dangers of cyber attacks.

The Central Bank confirmed it is co-operating with other institutions to implement the orders of the Russian President Vladimir Putin on amending the Russian legislation so that it reflects the latest trends in the fintech area. The amendments should define the status of digital technologies, while taking into account that the Russian Ruble should remain the single official payment means in Russia. There should also be clear requirements for entities engaging in cryptocurrency mining. The laws should also be amended to regulate the cryptocurrency segment and ICOs.

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