Over the past few years, it has become abundantly clear that Russia is not a big fan of the Bitcoin concept, to say the least. However, that doesn’t mean the local banks aren’t keeping a close eye on the evolution of blockchain technology. Sberbank has indicated they want to join the growing consortium of banks developing blockchain-based technological solutions.
Sberbank Sees Value In Blockchain Technology
When Russia’s largest bank shows a keen interest in joining a consortium of financial institutions working on blockchain technology projects, things are starting to look more positive than ever in the country. Up until this point, Russia has not been too keen on Bitcoin, nor its technology.
According to Russian news source Kommersant, Sberbank’s First Deputy Chair of the Management Board Lev Khasis openly expressed the institution is keeping an eye on blockchain technology evolution. In fact, he went as far as stating that, once institutional blockchain solutions are made available, Sberbank will be among the first to embrace them.
So far, over thirty banks around the world have joined the R3-led blockchain technology consortium. Developing institutional services based on Bitcoin’s blockchain is not an easy task, which is why R3 CE brought Bitcoin and blockchain experts on brought as well in recent months.
Unlike what most Bitcoin enthusiasts may have assumed up until this point, the R3-led consortium is focusing on interoperable Blockchain solutions, which are compatible with all of the participating bank’s infrastructure. This would be quite a change from how banks operate internally right now, as there is no direct communication between the individual frameworks.
Sberbank is the first Russian bank to join the R3 consortium so far, which can be seen as a milestone for the project. Considering how the blockchain’s distributed ledger initiative is attracting interest from international banks, it will be interesting to see what kind of solution will spawn from this collaborative effort.
Still No Love For Bitcoin in Russia
One thing to keep in mind is that, even though one of Russia’s major banks is now part of the blockchain consortium, there is still no official word on Bitcoin in the country. Previous proposals to ban Bitcoin in the country, as well as the draft of penalties against people involved in digital currency, are still in effect to this very date.
Additionally, Sberbank is not planning to issue their own form of cryptocurrency, nor will they be using Bitcoin any time soon. Their focus is entirely on blockchain technology, which can speed up internal fiat settlements, as well as payments between other banks. Bitcoin’s blockchain is far more reliable, faster, and simpler to use compared to internal infrastructure.
What are your thoughts on Sberbank joining the blockchain consortium? Let us know in the comments below!
Source: Finance Magnates
Images courtesy of Shutterstock Sberbank