Russia's Central Bank studies blockchain technology

The Bank of Russia has announced an “analysis and assessment” of the potential application of blockchain technology in the financial sector.

The country’s central bank revealed on Sunday that it had set up a working group that will provide analysis on “advanced technologies and financial market innovations,” with the goal of studying decentralized ledger technology and developments in areas such as mobile payments.

The news comes at a time when certain public groups in Russia are actively advocating for a ban on tokens, including digital currencies. Previously, officials from multiple agencies, including the Russian Ministry of Finance, which oversees financial policy, members of the country’s legislative body, the State Duma, and the criminal investigation organization, the Investigative Committee, have expressed concerns about the development of the technology.

The Russian Central Bank, on the contrary, has always been optimistic about the technology and issued many measurement reports as early as 2014.

Olga Skorobogatov, deputy chairman of the Bank of Russia and leader of the new team, said in the statement:

“The development of modern financial markets is inseparable from the development of financial technology.”

“Financial services are rapidly digitizing, with new business models, ecosystems and market players changing consumer behavior in financial services,” Skorobogatov added.

The working group plans to hold regular meetings with bank representatives, self-regulatory organizations and other financial market participants to discuss the use of new financial technologies.