Central Bank of Russia Runs Blockchain Pilot For Issuing Tokenized Assets
The Central Bank of Russia is weighing different options for the country’s policies on digital currencies based on the global developments. In December 2019, the bank said it could ban public cryptocurrencies like Bitcoin while it has been simultaneously testing its own CBDC along with a stablecoin linked to real estate.
In a fresh report shared by a local publication, The Russian central bank has completed a blockchain pilot project for the issuance and completion of “digital rights”. Thus, the new regulatory sandbox released by the Central Bank of Russia will allow users to digitize their services, goods, securities, and other assets.
Under this new regulatory sandbox, any organization will be able to issue its digital tokens. This will further open new business opportunities and attract fresh investments by creating convenient investment tools for customers. Ivan Bank, Director of Financial Technologies Department Zimin, said:
“It was one of the largest sandbox projects. We studied in detail the new business model and its relevance to market needs. An important detail of the service is the use of hybrid tokens, which make it easy to adapt to the needs of business and consumers and provide flexible solutions for attracting investments. Based on the results of the piloting, the Bank of Russia proposed to include in the draft federal law “On Digital Financial Assets” the provisions necessary for the introduction and development of such decisions in the emerging digital assets market, which were supported by government bodies and businesses”.
The blockchain platform for this regulatory sandbox has been developed by PJSC MMC Norilsk Nickel and will start its activities after the adoption of new laws within the federal structure.
Speaking about Russia’s work on a central bank digital currency (CBDC) Bank of Russia chairperson Elvira Nabiullina said: “Now such an opportunity is being actively discussed by many countries, we are also at the stage of studying this topic. First of all, we need to understand what will be the advantages for our citizens, for business, for example, compared with the option when we develop fast payment systems, expand them application not only for settlements between individuals, but also between legal entities”.
However, the chairperson has also said that Russia’s finance ministry will evaluate the prospects of CBDC, its stability in the financial system, and other challenges, before bringing it to the market.