Bank Of Russia Establishes FinTech Association

Nations across the globe are starting to become more aware of the blockchain movement. It’s a trend that has affected world leaders, academics, banks, and IT firms all looking for ways to capitalize on the potential of the technology in many sectors – especially in FinTech. The US, Korea, Japan, and Russia are all seeing more research and developments in the blockchain industry.

On December 28, 2016, the Bank of Russia approved the decision to establish an association for Financial Technology Development (Fintech Association). The association will consist of a governing body that includes founding members such as Alfa Bank, VTB Bank, JSC National System of Payment Cards, along with a supervisory board and chief executive officer.

The association’s objective is to study, research, and implement practical solutions within the FinTech sector by utilizing distributed ledger technology (DLT), open application program interfaces (open API), and remote identification.

Olga Skorobogatoua, Deputy Governor of the Bank of Russia stated:

"The main objectives of the Association will be the development and implementation of new technological solutions to ensure the development of the Russian financial market, as well as the creation of conditions for the digitization of the economy of the Russian Federation." 

Currently, the association is entering the final stage of the state registration process and operations are expected to begin in January 2017.

How does this effect Ethereum?

In October 2016, the Bank of Russia and its largest banks ran a test Ethereum-based prototype for financial messaging called “Masterchain.” The platform provides secure confirmation of customer transactional data, provides banking affiliates with state-of-the-art products and services, and speeds up transaction confirmation times. The adoption of an Ethereum-based, country-wide solution could turn heads in the FinTech industry and assist Ethereum with securing a foothold in Russia and other countries.