Central Bank of Russia tests transactions on blockchain prototype ‘Masterchain’

FinTech | October 10, 2016 By:

The Central Bank of Russia has developed and tested on an Ethereum-based blockchain prototype called ‘Masterchain’ for financial messaging, to be used by banks in Russia.

The prototype is a networking tool for the market participants using the DLT, which allows prompt confirmation of data actuality with respect to a customer and a transaction as well as fast creation of various financial opportunities for the market participants to provide game-changing products and services to their customers. In addition, the Masterchain enhances communication speed between the counterparties and assures required confidence in financial transactions.

“The creation of prototypes and joint inquiry of applicabilities help both the regulator, and the market participants understand outcomes, estimate capacities, mitigate the risks of using different technologies, and decide on follow-up actions. This is a good groundwork for onward progress. We would suggest that the Masterchain will be under way under the auspices of Consortium for fintech development being launched by the Bank of Russia. We are planning to consider the use of the Masterchain prototype as a component of the new-generation financial infrastructure in the future,” said Olga Skorobogatova, Deputy Governor of the Bank of Russia.

Major financial institutions were involved in developing the platform including Qiwi, Sberbank, Alfa Bank, and Tinkoff Bank, among others and the work was coordinated by the CBR.