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2016-10-19 15:11

Russia is known to be one of the most opposing countries towards cryptocurrencies but they seemed to have opened up to the idea of it as long as it is within their control.

It is reported the Russian government has partnered with its largest Bank, Sberbank, and the Federal Antimonopoly Service (FAS) to a blockchain based project. The blockchain technology is also used for the biggest cryptocurrency bitcoin for the storage of documents.

Blockchain is a system which makes it possible to transfer documents anywhere in the internet almost instantly while securing them with electronic signatures and cryptographically unforgeable.

In its statement the FAS said “The goal of the project is to study the possibilities of distributed document storage, which may increase the speed, reliability and quality of interaction during document exchange”.

“This decentralizing approach cuts costs because data processing centers are not required and the requirements for equipment protection are lowered. It is noteworthy that Russia is one of the first countries in the world where the state and market participants are looking at these innovations as a way to simplify business operations” said Andrey Tsarikovskiy, deputy head of the FAS Russia.

Russia seems to have decided that a further 'monitoring of virtual currencies' is needed, also to analyse 'risks of use of money surrogates for criminal activities'.

According to reports, the Ministry of Finance in Russia wants to punish users and traders of digital currencies with up to 6 years imprisonment and 1 million rubles ($16,000).

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