Russian Treasurers Association Joins Masterchain Banking Pilot

June 15, 2018
64 Views

The Russian Association of Corporate Treasurers is joining the nation’s central bank in trialing the government-run Masterchain blockchain platform, the group announced last week.

The association is testing Masterchain to facilitate communications within the national banking system, according to the Masterchain white paper. This would mark the latest move to use the platform to replace the SWIFT inter-bank communication network, a use case which was first discussed in April 2018.

The platform was created by the nation’s FinTech Association in collaboration with Russia’s 14 largest banks, including VTB.

According to the white paper, the system will include Russian banks and government agencies responsible for contract registration and market regulation. FinTech is claiming that switching to Masterchain in processing mortgage contracts will reduce operating costs up to five times and instead of days the transactions will take minutes.

The project also is expected to produce a KYC mechanism based on a digital identity so that banks will be able to share credit histories and information about fraud cases without breaking bank secrecy. The system is also going to deal with bank guarantees and letters of credits

However, as previously reported by CoinDesk, the ultimate goal for Masterchain is still to replace SWIFT. In particular, concerns that U.S. or European Union sanctions against Russia in 2014 might eventually remove the nation from the SWIFT system have spurred Russia’s experimentation with alternate financial communication systems. Previous tests have shown issues with processing different document format.

Russian flag image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

https://www.coindesk.com/russian-treasurers-association-joins-masterchain-banking-pilot/

You may be interested

European Banking Regulators Call for Unity in Crypto Regulations
Bitcoin
Bitcoin

European Banking Regulators Call for Unity in Crypto Regulations

btcethereumadmin - January 16, 2019

Last week, two of the largest banking regulators within the European Union released reports calling for uniformity in the regulations…

Educating the Next Wave of Bitcoin Developers
Bitcoin
Bitcoin

Educating the Next Wave of Bitcoin Developers

btcethereumadmin - January 16, 2019

Bitcoin is an open-source protocol that anybody can interact with. It is getting attention and attracting participation in different ways,…

DBS-owned Indian Bank to Close Account Over Crypto-Related Activity: Report
Altcoin
1 views
Altcoin
1 views

DBS-owned Indian Bank to Close Account Over Crypto-Related Activity: Report

btcethereumadmin - January 15, 2019

India’s first digital bank, the DBS-owned Digibank, is allegedly closing accounts involved in crypto-related activity. India’s first digital bank, Digibank,…

Leave a Comment

Your email address will not be published.