While Russian authorities and regulators take a notoriously hardline stance against Bitcoin, the country’s central bank has announced the establishment of a ‘working group’ that will seek to study distributed ledger or blockchain technology, the same underlying technology that powers Bitcoin .
In a confirmed nod toward showing favorability toward blockchain technology and new financial technologies (Fintech), The Bank of Russia (Russia’s central bank) has revealed the creation of a working group to evaluate the applications of blockchain technology.
The Bank of Russia made the revelation in a press release yesterday. The announcement, translated from Russian, read: [T]he Central Bank established the Working Group on the analysis of advanced technologies and innovations in the financial market. Among the priority issues – the study of distributed ledger technologies (eg: blockchain), as well as new developments in mobile [technology], payment [industry] and other areas. The Working Group will schedule regular meetings that will be attended by representatives of banks, financial market leaders and participants as well as self-regulating organizations that will convene to discuss the different aspects of the application and use of blockchain technology and Fintech.
Deputy Chairman of the Bank of Russia, Olga Skorobogatov who leads the group stated: The development of modern financial market is inseparable from the development of financial technology. Financial services quickly digitize new business models, ecosystems and market participants [to] change the behavior of consumers of digital services. The working group will also help in charting out a set of guidelines for a regulator who, predictably, will look over the ways in which blockchain technology will be put in practice.
“High-tech financial markets need a high-tech regulator, which must also thoroughly understand the new financial processes and technologies and their possible application in practice,” Skorobogatov added.
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