Blockchain in the Central Bank of Russia

• About technology: Blockchain
• About development in Russia: A blockchain in Russia
• About IT systems in the Central Bank: Information technologies in the Central Bank of the Russian Federation

2020: The Central Bank completed piloting of a blockchain platform for release and turnover of digital rights

The Bank of Russia carried out piloting of the service for release and the circulation of digital rights developed by Norilsk Nickel in regulatory "sandbox" and approved it. Service represents the platform under the hybrid rights and allows to tokenize any goods and services, including metals. On February 17, 2020 Norilsk Nickel reported about it. Read more here.

2018: 3 lessons which the Central Bank took out from the first experiments with a blockchain

Olga Skorobogatova, the first deputy chairman of the Central Bank of the Russian Federation, at the St. Petersburg International Economic Forum in May, 2018 told what three lessons were taken out according to the results of the first pilotirovaniye and tests in the field of technology of the distributed registers. Among them – projects based on a MasterChain which are kept by the Fintekh association created with the assistance of the Central Bank together with participants of financial market – a number of large banks.

The first lesson which is taken out by the Central Bank – need as soon as possible to resolve an issue with normative and legislative regulation of application of a blockchain. At the same time, according to the Central Bank, it should not be too tough and detailed. It cannot be made at the current stage of development, Skorobogatova considers.

Regulation of a blockchain should be soft, Olga Skorobogatova considers

Why many countries at first did not regulate this area at all, and now pass to "soft" regulation, generally entering concepts and determinations? To start new technologies and new projects, first of all, to be defined in terms of concepts: what is it what rights and duties, as the consumer and the investor will be protected, - she says.

According to Olga Skorobogatova, the first laws at which there is a blockchain and the related concepts which were prepared by the Central Bank already passed the first reading in the State Duma. These are laws on digital assets, on crowd funding where too there are concepts of technology of the distributed register, smart contracts, etc. and which assume entering of concepts into legal regulating documents in Russia, including the Civil code.

It becomes to enter an opportunity to use new technologies in the legal framework, Skorobogatova explained.

The second that the Central Bank found out for itself within pilots, - the technology of the distributed registers assumes change of all process to which players of the market got used. And it was the most difficult, the first deputy chairman of the Central Bank says. According to her, the market participants participating in the pilot and showing enthusiasm at the initial stage, eventually, got up before questions how many will cost them change of these or those processes with what difficulties changes will be connected and, eventually, why they need it.

Only by belief of participants with reduction of specific digits of further economy and effects such projects can be executed, Skorobogatova says. Large participating banks of pilots by May, 2018 spent already about half a year for cardinal change at themselves processes taking into account transition to use of new technology.

The third lesson which was learned by the Central Bank - it is not necessary to be in illusion that to customize a blockchain rather a little, and it will resolve the most part of issues. The distributed registers perfectly are built in and can be one of technologies at hybrid platforms and solutions.

Such examples are in the world, and the Central Bank thought that it is possible to use, for example, a blockchain for smart contracts, for the entrusted environment, but at the same time to make integration with a system online which registers payments because so far it is more reliable is more practical and it is more clear.

So here different options are possible: both the distributed registers, and the distributed registers as a part of a hybrid technology, as well as some element from the distributed registers, - Olga Skorobogatova added.

Pilots based on a MasterChain over whom the Fintekh association works with banks includes reduction in cost and acceleration of process of securitization and reliability augmentation of storage of mortgages using the decentralized depository accounting system. Using a MasterChain there are also plans to try to reduce a fraud risk at remote identification of clients.

One more project – work on reduction in cost of release of digital guarantees, increase in their protection and simplification of check for the third parties using creation of the distributed register of digital bank guarantees. The fourth project – issue of digital letters of credit.

According to Olga Skorobogatova, in the 3rd quarter 2018 it is going to pilot a MasterChain on real data with banks on digital letters of credit, mortgages and bank guarantees. Skorobogatova paid attention that these pilots become on the transactions assuming records and an opportunity to see the movement of transactions and transactions in one field.

2017: The deputy chairman of the Central Bank Olga Skorobogatova about perspectives of a blockchain and transition to virtual national currency

According to the vice-chairman of the Central Bank of Russian Federation Olga Skorobogatova, there will pass 7-10 years, so far in the financial sector and in other sectors the blockchain will fully be industrially applied on serious projects. She read this forecast, speaking at the St. Petersburg International Economic Forum in May, 2017.

The deputy chairman of the Central Bank Olga Skorobogatova considers that industrial use of blockchain technology will begin in 7-10 years

Till this time banks will invest a blockchain in development and to carry out more and more pilot projects, she considers.

The representative of the Central Bank noted that now at the level of the financial sector and state agencies a lot of time for discussions, coordination of actions, delicate legal issues is spent, but because now a lot of things become, turning on many pilot projects together with market participants, the result will be quickly enough visible.

And in Russia, and abroad implementation the blockchain goes generally at the level of experiments and pilot projects so far. At the same time, according to the representative of the Central Bank, the Russian banks are inclined to look more optimistically at terms of mass distribution of this technology at themselves, than foreign colleagues.

Earlier on PIEF-2017 the chairman of the board of Sberbank German Gref predicted that mass use a blockchain can be expected not earlier than in 1.5-2 and in order that "finally to ripen", the blockchain technology needs 8-10 more years.

Skorobogatova told that the Central Bank within Association of Financial That is going to do in the area a blockchain in 2017-2019 (the association was created in December, 2016 together with the largest banks with the assistance of the Central Bank).

According to her, five projects where the Central Bank sees perspective of piloting of technology of the distributed registers were defined. One of them - testing together with banks of a prototype of the distributed register allowing to exchange financial messages.

The second project - the digital letter of credit (the account on which it is possible to reserve money when carrying out transactions on sales of goods or provision of services). The main participant of this project - VEB with which within the PIEF the association signed the agreement on cooperation in this direction. It is planned that the digital letter of credit will be used for the organization of trade between Russia and Belarus.

Other three projects - depository accounting of electronic waybills, information exchange for KYC (KYC – know your customer, know the client) and digital bank guarantees.

The specified pilot projects mean serious work of market participants, and not just the Central Bank, They say are necessary to understand and make proposals on a project startup in industrial use with the road map of implementation, the representative of the Central Bank explained.

Olga Skorobogatova added that Russia will reach also virtual national currency. The implemented pilot projects will play in it a certain role.

Taking into account pilots who we do we will better understand what system we could use in the future for our national currency, - she told. - We will precisely reach virtual national currency, and we already began to work on it.

2016

The Central Bank looks for the contractor for development of the Russian version of a blockchain

In December, 2016 the Central Bank of Russia announced the tender for software development using technology of the distributed registers. The Software Package (SP) "MasterChain" is going to be used for exchange and information storage about transactions. In more detail - in the separate article.

The Central Bank and the Russian banks tested a blockchain project

On October 5, 2016 the Bank of Russia announced a MasterChain development and testing of technology of transmission of messages. The bank regulator told about this instrument of interaction between participants of financial market on the website. Read more here.

The Central Bank intends to solve a problem of off-balance investors by means of blockchain technology

The Bank of Russia intends to use blockchain technology for solution of the problem of off-balance investors when people after a response at credit institution of the license do not find themselves in the register. About it media were told by the source close to the regulator^[1].

The working group of the Central Bank discusses an issue of application of a blockchain for formation of the register of investors. Data from a blockchain cannot be deleted that does the system of the most transparent.

"At revocation of license of bank or other insured event continually there "are" citizens who are not in the register of investors, but who address to DIA behind compensation — the representative of large Russian bank explained to Izvestia. — These are really injured investors whom the bank brought for balance to reduce the size of contributions to fund of deposit insurance".

According to the bank representative from top-10, storage of the register of investors in a blockchain will also allow to reduce and number of fraudulent activity.

In addition to really injured citizens pseudo-off-balance investors according to false documents address for an insurance indemnity — the banker explained.

According to the interlocutor, when checking it becomes clear that these people it was not initial among the acting clients of banks, and there is no special corpus delicti for pseudo-off-balance investors in the Criminal code.

"At the moment we are in the beginning of a way, we study different opportunities of the system solution of a problem related to investors, data on which for any of several reasons are not present in the register" — commented in the press service of the Central Bank.

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