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Russia’s Largest Bank & a Federal Agency Launch a Blockchain Project for Document Exchange

Last Updated March 4, 2021 4:51 PM
Samburaj Das
Last Updated March 4, 2021 4:51 PM

Sberbank, Russia’s largest bank by assets and the Federal Antimonopoly Service of the Russian Federation (FAS Russia) have launched a blockchain pilot for the encrypted exchange of documents.

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The blockchain binge doesn’t quit, especially in Russia. Just a week after the Russian central bank and prominent banks like Sberbank announced the successful testing of a blockchain prototype among major banks in the country, Sberbank has revealed yet another blockchain endeavor.

This time, the bank has partnered with FAS Russia, to pilot a blockchain project called the “Digital Ecosystem”, according to a press release  by the federal authority.

Stepan Kuznetsov, managing director of Sberbank’s Shared Services department shared insights about the platform. He stated:

Digital Ecosystem is innovative because the document exchange process does not involve communications providers. The convenience of this solution and its cost-optimising effect is achieved by using the networks of its participants

Unveiled at Finopolis 2016 in Kazan, Russia by the governmental authority yesterday, the project will facilitate exchanging documents using distributed ledger, or blockchain technology.

The FAS is a federal governmental body with the authority to execute antitrust law across a number of industries. Furthermore, the FAS can also regulate utilities such as deliberating and deciding electricity tariffs, gas prices and more. The body’s sub-departments also exert regulation over financial markets, telecommunications, natural resources, foreign investment and other sectors.

Blockchain Secured Documents

The project will see the two institutions come together to study and develop scenarios to facilitate distributed document storage. With blockchain technology, the goal is to increase speed and reliability during interactions among participants.

Andrey Tsarikovskiy, deputy head of the FAS Russia said:

This decentralising approach cuts costs because data processing centres are not required and the requirements for equipment protection are lowered.

The Digital Ecosystem platform will enable documents to be stored and transferred with encryption and will provide for signing of documents between parties, using electronic signatures.

Intriguingly, Russia’s largest airline Aeroflot, major coal miner Russian Coal Co., and oil refinery ForteInvest are all onboard the pilot project.

 Images from Shutterstock.