Central Bank of Russia official: Bitcoin and Blockchain are separate

Announcements | April 28, 2016 By:

The head of newly established Department of Financial Technologies, Projects, and Process Organization of the Bank of Russia Vadim Kalukhov insists that the terms “bitcoin”, “blockchain” and “distributed ledgers” shall be considered separately.

Kalukhov added that the Central Bank closely follows researches on digital national currencies carried out by other regulators.

“First of all, we have to agree on terms and separate such things as bitcoin, blockchain, and distributed ledgers. Bitcoin is a cryptocurrency based on blockchain technology. Blockchain is a chain of transaction blocks containing records on all transactions of the network. Distributed ledger is a technology of data or value exchange not necessarily based on blockchain. For example, Ripple protocol implies transaction-wise processing without any blocks,” Kalukhov said.

According to Kalukhov, the Central Bank has already launched a project to study distributed ledgers, which would feature analysis and development of approaches towards the technology’s application in financial markets’ operation. Simultaneously, several prototypes for run-in tests of particular models are being discussed.