Russian Bank to Develop Blockchain-Based Payment System

Everyone seems to be interested in Blockchain. It might even be more popular than cryptocurrency itself. Or is that too much of a stretch? Either way, there have been a number of companies and banks announcing pivots into the blockchain sector. Now, it seems the latest to make a move into the industry is Russian state-owned development bank Vnesheconombank (VEB). 

What’s Going On?

The world is now aware that the governor of Kaliningrad, Anton Alkikhanov, and the chairman of VEB, Sergei Gorkov, had a meeting last week at the Russian Investment Forum in Sochi. At the meeting, the two leaders signed a deal to pilot a new payment system. The system will be entirely blockchain-based. 

For those who don’t know, Vnesheconombank was founded in 1922 and primarily provides funding for projects targeted at furthering the Russian economy. Therefore, it’s safe to say this new agreement was a sensible decision on the banks part. Why? Because there is no doubt in my mind that the system will help to develop the Russian economy.

>> Another Bank Working With Blockchain 

It’s not just the bank that’s going to benefit from this new system either. The region of Kaliningrad, which is a city in Russia, will as well. Why? Because this region is a known area for putting to use advanced technologies that have the potential to support Russia’s ever-increasing digital economy. As of right now, Kaliningrad has a population of 437,456. 

>> Other Companies Moving into Blockchain 

Now, the goal behind the blockchain-based payment system is simple. Both the government and the bank believe the technology will allow for an improvement in the quality of social services. How? By slashing costs and increasing transparency. 

It’s worth adding that Russia isn’t the only country discussing blockchain and the cryptocurrency sector. While some countries want more regulation for digital currencies (looking at you, Britain), others, such as Canada, which now has its KFC’s accepting Bitcoin, are embracing it. Now I know what you’re thinking – what does Bitcoin have to do with blockchain? Well, let’s just say blockchain technology is the mastermind behind the revolutionary virtual currency. 

Check back in later this week to see if there is any more news circulating around about the new blockchain-based payment system. 

Featured Image: depositphotos/borjomi88

Caroline Harris is a third-year student at Capilano University in North Vancouver, Canada. Having already completed an Associates Degree in Psychology, Caroline is working towards finishing her Bachelor’s degree in Communications. In preparation for working in the advertisement sector, Caroline is writing financial content and analysis. On a daily basis, Caroline works on articles regarding the following topics: finance, consumer, technology, and politics.

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