Russia Continues Moving Away From Dollar As Banking Sector Incorporates Blockchain – Rory Hall (17/12/2018)


by Rory Hall, Sprott Money:

Let’s not forget that Russia played host to the worlds largest blockchain technology conference in June 2018. This is to say nothing of the fact that President Putin met with the developer of Ethereum almost 2 years ago to discuss how the technology works and how it could be used in the Russian economy.

As Matt Agorist, The Free Thought Project reported in June 2017

After the massive push toward gold, however, Putin is looking to the future — and the future is in cryptocurrency.
Last week, seeking to further protect Russia from the claws of the international money changing cartel, Putin met with Ethereum founder Vitalik Buterin.
As the US seeks to dominate the currency market by limiting the use of cryptocurrency, Russia is proving they are not as beholden to the bankers by facilitating competition with their native currency, the ruble. Source

Today it is being reported that Russia is moving their banking sector to blockchain technology. We already know the Russian and Chinese banking systems are tied together but it is unclear as to what this latest move by Russia means to China and their financial system ties.

Blockchain banking pioneers are found in Russia
Russia’s leading banking institution, Sberbank, and MTS, a major mobile operator, completed successfully a full-cycle security deal using smart contracts – from bond issue to full execution of the issuer’s obligations to the investor, East-West Digital News (EWDN) reports.
The MTS commercial bonds were organized and purchased by Sberbank’s corporate and investment banking business. Their nominal cost – 750mn rubles, or nearly €10mn – was redeemed.
The transaction was carried out using the blockchain platform of Russia’s central securities depository (National Settlement Depository, or NSD). This platform is based on the Hyperledger Fabric 1.1, one of the latest blockchain implementation frameworks.
As reported by Sberbank, “the use of the blockchain allowed securities and money to be transferred simultaneously.” While the issuer, the NSD and the investor had access to the decentralised platform to carry out the deal, “the list of participants could be changed dynamically,” making the transactions accessible “to a wide range of investors.”
“Changing the world” with blockchain
“Blockchain can change the world just as much as the Internet. This technology is very important to the banking sector as it allows expenses to be reduced, significantly increases the speed and security of transactions and provides an unprecedented level of trust and transparency for all transactions,” commented Andrey Shemetov, Sberbank’s Vice President and Head of the Global Markets Department.
“I’m sure that our joint blockchain project with the NSD and MTS is just the beginning, and products and services using blockchain, including smart contracts, will become commonplace in the future,” he added. Source – Russia-Insider

The more the west sanctions Russia, the stronger their economy becomes. At this pace Russia will be one of the strongest economies in the world within the next few years. With the fortification of their economic and financial systems through economic alliances, an in-house alternative to SWIFT and, now, blockchain technology, combined with the program they have unleashed in their food production you have a power house of an economy in the making. If Russia’s farm products become the envy of the world, there will be no stopping their economy from exploding to the upside.

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