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Olga Skorobogatova, deputy chairman of the Bank of Russia (Russia’s central bank) has, in a blockchain conference, spoken about the possible development and creation of a national digital currency in the Russian Federation.

Speaking at the “Blockchain and Open Platforms” conference in Russia, Deputy Chairman of the Bank of Russia Olga Skorobogatova has suggested that a national digital currency is likely to be developed in the future. She cited the increasing relevance of distributed ledger or blockchain technology, an innovation that will come to being used in Russia’s financial markets as the factor behind the creation of a national digital currency.

In quotes reported by Russian financial publication Bankir.ru, spoke about the research being done by the Bank of Russia’s blockchain working group. Stressing that blockchain’s applications potentially goes beyond Bitcoin, the cryptocurrency, she stated:

As a result of our work, we have come to one conclusion. Blockchain as a technology used in the Bitcoin payment system is certainly interesting, but the [technology] of distributed registers provide more exciting opportunities in the combination of elements.

Not only in the form of chains and validation, but also in processing of distributed storage of data for simpler purposes.

The creation of the working group was announced toward the end of February, an initiative set up by Russia’s central bank to study and understand blockchain technology.

In talking up the innovation of blockchain, Skorobogatova spoke of another application for distributed ledgers in the financial market – the creation of a national digital currency. She cites a combination of public and private elements in a distributed register as a means to set the framework for a digital currency.

With the rules of a hybrid network (both public and private systems to create a distributed ledger, a national digital currency is most likely [to occur].

A Russian Blockchain Consortium?

Furthermore, Skorobogatova suggested the establishment of a consortium, “in the image and likeness” of the global banking consortium led by New York-based R3. She recommends the coming together of various participants, to explore the applications of blockchain would be beneficial to the Russian market.

In underlining her point, she remarked:

The [blockchain] game isn’t for individuals. Distributed ledger technologies require participants from several platforms with a coherence and understanding of the system.

National Digital Currencies

Ecuador has been credited with creating the world’s first national digital currency. CCN reported on the country’s trial of the currency which took place during late 2014.

More recently, an official of the Reserve Bank of Australia, Australia’s central bank speculated that a digital currency issued by the central bank is a possibility in the future.

The most prominent example of a central bank intending to launch its own digital currency was revealed when the People’s Bank of China announced its plans to issuing a digital currency earlier this year. The central bank’s revelation was reinforced by its governor in February, whilst noting that blockchain technology offered privacy-protection properties, a feature fundamental in a country of over a billion people.

Disclaimer: Translations from Russian are unofficial.

Featured image from Shutterstock.

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Posted by Samburaj Das