Russian Central Bank Approves Pilot Blockchain Project

Feb 18, 2020 at 10:37 // News
Coin Idol
Russian Central Bank approves Blockchain project

The bank of Russia (CBR) has successfully completed the pilot of a blockchain and distributed ledger technology (DLT) platform for the release and turnover of digital rights. It enables you to digitize (tokenize) goods, services, securities and other valuable assets. Any company or institution will be able to create cryptocurrencies on the site.

All this enables to expand the business's ability to allure financing, and creates new modern techs for clients to invest.

The CBR conducted a regulatory "sandbox" piloting of the digital rights service developed by Nornikel and approved it. The service is Russia's first hybrid rights platform and allows to tokenize all sorts of goods and services, including metals produced by Nornickel.

As a result of the piloting, the CBR's Financial Market Development Committee recognized the possibility of its operation after the adoption and entry into force of the Federal Digital Financial Assets Act.

The service verified by the CBR is nornickel's project to create a unique ecosystem in Russia, which will allow to "digitize" any assets and will ensure the subsequent circulation of Asset-Backed Coin (ABC-Tokens) tokens.

Opening Up New Business Financing Opportunities

The electronic platform will act as an operator, ensuring the process of transferring the rights to the ownership of the asset in a digital form (token) with the help of modern and safe distributed registry technology, as well as ensuring the functioning of the token and derivatives.

"The release of hybrid cryptocurrencies on the blockchain platform, combining several types of digital rights, is a very flexible tool that will open up new business financing opportunities and expand investors' access to promising financial instruments," said Ivan Simin, Director of Financial Technology at the Bank of Russia.

An important feature of the new ecosystem is its safety. All issuers and token owners will be required to pass identification on the platform. Identification will be organized in accordance with the requirements of both current and projected legislation.

This could be the first significant project in Russia, both in tokenization and on the practical industrial application of distributed ledger technology. For issuers, new technology means lower costs, the ability to attract financing on more favorable financial terms and increased liquidity of assets, and for investors - access to new promising instruments for investment. 

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