- The Bank of Russia is working on a digitized mortgage solution supported by domestic Enterprise Blockchain Masterchain.
- The government seems to have embraced Blockchain Technology but is still hostile towards cryptocurrencies as they recently placed a ban on crypto activities in the country.
Reports have now emerged that the Russian Central Bank is well on course in developing an online Mortgage solution that is supported by blockchain technology. They are leveraging domestically produced Masterchain Blockchain.
In a May 28th online meeting, the First Deputy Chairperson of the Central Bank, Olga Skorobogatova revealed that the Central Bank was in the late stages of releasing a digitized mortgage solution on domestic Blockchain Tech. They had already conveyed copies to the Federal Registration Service and government pending approval. She reported that at least 9 banks and a depository had already onboarded the project on the Enterprise Blockchain Masterchain.
“…what we now they gave the proposal directly to the government and Rosreestr – this is to finalize the process so that the full cycle of digital mortgage operations is implemented on the Masterchain”
Notably, Masterchain launched in 2017 by Fintech Association affiliated with, boasts of being the first to receive accreditation from the financial watchdogs, Federal Security Service (FSB).
The Russian ministry in charge of the Economy has lodged a bill that will look to create a special framework under which Blockchain will be regulated. The bill, if it goes through the State Duma, will seek to enable testing of Blockchain in a special regulatory sandbox. The Blockchain projects would be aligned to 8 sectors: financial markets, government services, trade, healthcare, distance learning, transport, manufacturing to construction
Russia support for “blockchain not crypto”
The Russian government however has a very different stance with regard to crypto. They have recently imposed a crypto ban following an agreement between the Russian Central Bank and the FSB.
Just last week, Russian officials’, members of the State Duma (Russian Legislature) proposed fines amounting to 2 million Rubles ($28340 as per this writing) and up to 7 years’ imprisonment term for illegal issuance of cryptocurrencies and digital assets.
If the bill sails through it could be set to outlaw: crypto mining, crypto exchanges, trading, and extending to even fiat to crypto on-ramps. This will now see crypto firms move to other neighboring crypto-friendly jurisdictions.