Blockchain For Social Payments Explored By Russia’s Kaliningrad District

Announcements, Blockchain | February 20, 2018 By:

Russian state-owned development bank Vnesheconombank (VEB) has teamed with the Kaliningrad district in Russia to test blockchain technology for social payments and electronic services.

Kaliningrad governor Anton Alkikhanov and VEB chairman Sergei Gorkov met last week at the Russian Investment Forum in Sochi to sign the agreement underpinning the trials.

The parties intend to cooperate in a number of areas, in particular, the implementation of modern IT solutions in the Kaliningrad region. This includes projects using blocking technology for social payments, as well as projects to introduce e-services to improve the efficiency of public and corporate governance.

“We are confident that Vnesheconombank’s expertise in the area of ​​blockchain will enable us to improve the quality of management decisions in the region,” Alikhanov said.

Gorkov said the Kaliningrad region is one of the most active subjects of the Russian Federation in terms of implementing advanced technologies that support the development of Russia’s digital economy.

“The use of new technologies allows supporting social services by increasing transparency, reducing unnecessary bureaucracy, and making these accessible to citizens,” said Gorkov. “In addition, the introduction of blockchain will provide an opportunity to cut costs, which amount to trillions of rubles on a national scale.”

The state-owned developmet bank has shown a sustained interest in blockchain technology. Last year, VEB collaborated with e-procurement platform Roseltorg to come up with a transparent way to handle electronic transactions between businesses and government customers using blockchain technology.

The bank was also recommended by the Russian government to participate in a blockchain experiment focused on the data in the country’s real estate register.