Russia's Central Bank Mulls Ethereum System for Pan-Eurasian Payments

The Central Bank of Russia may use its ethereum-based Masterchain software to communicate financial messaging across the Eurasian Economic Union.

AccessTimeIconApr 4, 2018 at 9:00 a.m. UTC
Updated Sep 13, 2021 at 7:46 a.m. UTC

The Central Bank of Russia is considering using its Masterchain blockchain software to transmit SWIFT financial messaging across the Eurasian Economic Union (EAEU), an official said on Tuesday.

Russia's FinTech Association, formed under the oversight of the central bank, successfully carried out a trial of the ethereum-based software in 2016 and completed a working version of it in 2017.

"An active discussion is underway, and we are looking into several quality technologies, including Masterchain," said Olga Skorobogatova, the Central Bank of Russia's first deputy chairman, according to Russian news agency Tass.

Skorobogatova explained that Masterchain is under consideration within the context of a broader examination of how the blockchain could create a "supranational infrastructure" for payments within the EAEU, allowing member states to "sidestep" existing payment systems.

The Bank intends to operate its platform of choice within Russia first, rolling it out later as an EAEU-wide system.

As for when further deliberation over Masterchain might take place, Skorobogatova remarked, "I think that we will discuss options regarding this project as early as this year."

The Central Bank of Russia has been actively involved in the blockchain and cryptocurrency space, and has taken a particularly strict approach to the latter. In 2017, it both issued warnings regarding the risks associated with crypto investments and backed efforts to block websites selling cryptocurrencies in the country.

Central Bank of Russia image via Shutterstock

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
First Mover Asia: Bitcoin Holds Above $21K in Weekend Trading; Solana Web3 Phone Faces Long Odds

Ether stays over $1,200; prior blockchain phones have failed because the market has realized their functionalities are already available via apps that can be loaded onto any old phone.

CoinDesk - Unknown
2
CoinDesk - Unknown
Opaque Platforms and Intertwined Protocols Pose Big Risk to Crypto

Second article in a series about risks we’re thinking about during these crypto down days.

CoinDesk - Unknown
3
CoinDesk - Unknown
Putin Weaponizes Inflation

Examining a recent propaganda speech from the Russian leader.

CoinDesk - Unknown
4
CoinDesk - Unknown
Morgan Creek Is Trying to Counter FTX’s BlockFi Bailout, Leaked Call Shows

FTX’s $250 million credit facility offer – if inked as initially proposed – stood to effectively wipe out all BlockFi shareholders, including Morgan Creek Digital, the firm told its investors.

CoinDesk - Unknown