In late December, the Central Bank of Russia declared that it would be examining its state-backed cryptocurrency under a regulatory sandbox. As per the latest reports, the tests have been completed successfully.
Blockchain And Central Bank Of Russia
As stated in the press release, the Central Bank of Russia has completed a pilot project for circulation and issuance of “digital rights”, which allows it to digitize services, goods, securities, and other assets.
By utilizing the platform, any organization could issue virtual tokens. Reportedly, this would extend business opportunities when it comes to gaining capital together with producing new convenient investment tools for the users.
Citing on the matter, the Director of Financial Technologies, Ivan Bank, noted:
“This was one of the most significant sandbox projects. We analyzed in detail the new business model and its connection to the demands in the market. An essential aspect of the service is the hybrid tokens use, which make it simple to adjust to the needs of consumers and business demands to offer flexible solutions to gain investment. Following the piloting results, the Bank of Russia aimed to include “On Digital Financial Assets” in the draft federal law. The provisions are necessary for the development and introduction of such choices in the developing digital assets market, which businesses and government agencies supported.”
In accordance to the report, the blockchain platform would begin its activities once the “On Digital Financial Assets” federal law comes into action. Apparently, this draft bill was already finalized.
A Serious Step Towards Blockchain Adoption
In December, some reports stated Russia’s Central Bank was testing cryptocurrencies supported by real assets within a regulatory sandbox. Back then, the head of the bank, Elvira Nabiullina, said:
“At first, we require to understand what will be the benefits to our people, for business, for instance, compared to instant payment systems, because the digital ruble issue can have serious outcomes leading to changes in funds redistribution, deposits outflows and the structure of the financial market.”
Anyhow, it was necessary to outline that this seemed like a serious step towards further adoption of blockchain technology. If Central Bank of Russia, together with its regulators, legitimized and approved the facility to digitize assets and turn them into tokens, this could possibly bring back some methods of capital raising such as Initial Coin Offerings (ICOs) and Security Token Offerings (STOs). However, it remained interesting to note whether Russia would put this legislation forward and if it would genuinely enable the tokenized assets.