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The Russian central bank will launch a digital mortgage platform powered by a blockchain

May 28, 2020

It is reported that The Russian central bank is developing a digital mortgage platform based on a nationally developed blockchain called Masterchainthe state news agency Ria reported on May 28.

According to Olga Skorobogatova, first deputy governor of the central bank, Masterchain has recently been supporting digital mortgages and is forming the basis for the next platform.

The financial institution has already submitted the proposal for its digital mortgage project to the government and to the Federal Service for State Registers, Cadastre and Cartography (Rosreestr).

The Russian central bank will launch a digital mortgage platform powered by a blockchainThe Russian central bank will launch a digital mortgage platform powered by a blockchain

MasterchainAccording to reports is the first blockchain platform in Russia to be certified by the Federal Security Serviceor FSB. According to previous reports, it is an authorized blockchain based on Ethereum, launched in 2017 by the FinTech Association, a company affiliated with the Bank of Russia.

In particular, it would not be the first time that Masterchain has been used for electronic mortgages. In September 2018, a Russian subsidiary of Raiffeisen Bank International reportedly released mortgage documents with details of the parties to the transaction, the loan and its term, and the property acquired from Masterchain in the decentralized deposit system (DDS).

Anti-cryptocurrency, blockchain friendly

Despite the central bank’s blockchain efforts, the Russian government was generally hostile to cryptocurrency. Earlier this month, local lawmakers proposed fines of up to 2 million rubles ($ 27,800) and seven years in prison for illegally selling digital assets and cryptocurrencies.

Another sign of the intensification of the “blockchain before Bitcoin” mood in Russia is yesterday’s news about Sberbank, the country’s largest bank, which calls for bids for 4,917 ATMs to support “blockchain operations”.

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