Russia's Central Bank launches Fintech Development Association

Rage Comment : The Russian Central Bank, the agency bank and some financial market participants jointly decided to establish the Fintech Development Association and determined the association's charter, list of founding members, management committee and CEO. Through the learning and introduction of cutting-edge technologies such as blockchain distributed ledgers by association members, more opportunities will be provided for the domestic financial market. At present, the association only needs approval from relevant national departments to be officially established.

Translation: Annie_Xu

The Bank of Russia announced that its correspondent banks and financial market participants have decided to establish the FinTech Association (Association for Financial Technologies Development).

The discussion was held on December 28, 2016, during which the association’s charter, the list of founding members and the management committee were determined, and a CEO was appointed.

Olga Skorobogatova

Olga Skorobogatova, deputy governor of the Central Bank, said:

"The main objectives of the association include developing and providing new technological solutions to ensure the development of Russian financial markets and promote the digitalization of the Russian economy."

In addition to the Bank of Russia, the founding members include Alfa Bank, VTB Bank, and JSC National System of Payment Cards; they will study and introduce the most promising technologies, including distributed ledger technology, open application development interface (open API), and remote identity authentication technology to develop a single payment space for legal groups and families.

In early October, the central bank announced that it had developed a financial communications technology prototype, Masterchain, using distributed ledger technology together with market participants. It can quickly confirm the authenticity of consumer and transaction data, creating opportunities for market participants to provide innovative financial products and services.

Official sources indicate that the association's legal registration process has entered the final stage and will soon submit registration documents to relevant state authorities for approval. The association is expected to begin operations in January 2017.