Bank of Russia may be ready to use blockchain technology for sending and receiving payments. The information released by the news outlet Izvestiya on My the 4th. According to the reports, Bank of Russia could be using the Ethereum platform to speed up payments.
Different companies, banks and governments all over the world are working with blockchain technology so as to improve transaction speeds and reduce costs. This time, the Bank of Russia may be the next in the list of institutions working with this technology. According to banking sources the plans for using Ethereum have been confirmed.
The main purpose of the central bank of Russia is to transfer payments on SPFS – a local version of the SWIFT system. If the integration turns out to be successful, then, the system could potentially become ‘more reliable’ than SWIFT itself, which had several issues, hacks and security concerns in the last years.This is not the first time that blockchain technology sees adoption in Russia. At UseTheBitcoin we have reported many times that Russia is a country very interested in exploiting distributed ledger technology. Indeed, it has even explained its plans to create its own virtual currency known as CryptoRuble.
A senior official at fellow bank BKF said:
“Implementing blockchain technology undoubtedly raises the level of protection for SPFS in relation to hacker attacks. This is especially pertinent given the slew of banks, including Russia’s Globeks, which have fallen victim to hacker attacks via SWIFT.”
The size of the savings by switching to blockchain technology are not specified and yet unknown. What is important to mark is that the current costs of using SPFS is around ($0.03) per transaction. Moreover, the reduction of costs should also be linked with the increased security. Banks will be losing less money from problems in the network, hacks, security issues or other circumstances.
Back in February, we wrote that Russia’s largest state bank, Sberbank, was going to launch a virtual currency exchange in Europe, showing that the interest for virtual currencies is growing.
With cryptocurrency and the market in the news, every day for some reason or the other, conventional media portrays a picture of disdain and intolerance between governments and the industry. While this is true with the majority of countries, there are a lot of proud nations that are welcoming the new with open arms.
The blockchain revolution is something every developing nation ought to want to be at the forefront of. Because the blockchain is the future and it is just a matter of time before the technology becomes one the underlying principle of all systems. While the assumption may seem conceited, the blockchain’s capability is actually that much that its potential alone is enough to entice people to switch.
Countries like China, India and Pakistan have recently gone and released statements through their Reserve Banks banning the dealing with cryptocurrencies, which on-ground cripples the growth potential of the industry in the respective countries. But a lot of countries have taken the change head-on and when the time comes for others to make the transition, they will lead the world into its new era.
Here is a list of ten most cryptocurrency friendly nations in the world.
In early 2017, the country staged a full-fledged shift of governance onto the blockchain. Along with its politics going on the blockchain, its healthcare, voting and tax systems followed shortly after.
Many companies that are based out of countries that are not pro-crypto do their testing and research in Switzerland since FINMA has released guidelines that help and, in fact, encourages research and exploration into the capabilities of the blockchain.
In the first quarter of 2018, the Australian Government released a policy whose enactment would make sure that cryptocurrencies were available easily to everyone that was interested. The policy told 1200 newsagents country-wide to make cryptocurrencies like Bitcoin and Ethereum available over the counter.
The government has a very teasy 0% tax on crypto assets as they have no ‘issuers’ and come under no guidelines that the finance ministry has in place. This, however, does not mean the government has not repeatedly issued warnings about the risk and volatility of the market. But that is where the government of Denmark drew its line. No bans, no restrictions, nothing.
Canada also has the rare pride in having two cities be called ‘bitcoin hubs’; Vancouver and Toronto. The country, in general, is bustling with crypto exchanges and blockchain startups.
The Dutch government have decidedly been quite lax with regulations for the crypto market. And has also been experimenting with making its own crypto coin.
Regardless, the country is home to a thriving crypto community spread in big and small pocket all over. And only recently, a group of financial big-wigs came together to create the UK’s first blockchain industry trade body.
There was also a lot of chatter about the possibility of the Russian government bankrolling its own cryptocurrency; the crytoruble. But the project was shot down by the country’s very own finance ministry, saying the country should not have its own cryptocurrency and should instead support the market.
In Japan, it is not only the government, but the private sector seems to be all for crypto and blockchain interventions too. With many governments moving their documentation and tracking onto the blockchain and being more accepting of crypto as a method of payment.
The government, though it has issued multiple warnings about the use and trade of cryptocurrencies, has no steadfast laws under which the crypto market falls and hence has resulted in the vast mushrooming of crypto and blockchain tech startups. It is also the home for numerous cryptocurrency exchanges.