The Bank of Russia is reportedly creating a digital mortgage network based on a locally built blockchain platform dubbed Masterchain, as per state-owned media outlet Ria on May 28. According to the first Deputy Governor of the Bank, the blockchain platform has recently begun to support mortgages, which is the cornerstone of the impending platform.
The Russian Central Bank has already sent its proposal for a Digital Mortgage Platform to the Government of Russia and the Federal Service for State Registration, Cadastre, and Cartography (Rosreestr).
In fact, the domestic blockchain platform is the first to be validated by the Federal Security Service or the FSB. Previous reports say that the platform is an approved Ethereum-based blockchain platform built back in 2017 by the FinTech Association, which is under the jurisdiction of the Bank of Russia.
Furthermore, this is not the first time that the country’s blockchain platform has been used for the digital mortgage platform. Approximately two years ago, a Russian-based subsidiary of Raiffeisen Bank International reportedly provided mortgage documents with information on the parties concerned, the amount and duration of the mortgage, the property involved in the Masterchain Decentralized Depositary System (DDS).
Digital mortgage platform signals Russia is blockchain-friendly
Although the country’s central bank has blockchain-based ambitions, the Russian government has been maleficent towards digital currencies. In fact, the Russian legislature recently proposed a fine of up to 2 million rubles ($27,800); and up to seven years imprisonment for the trading of cryptocurrencies.
Moreover, Russia’s Sberbank recently purchased 5,000 blockchain-based touchless ATMs. This is another signal that the country is a massive supporter of blockchain technology; although it is opposed to the idea of digital currencies.
Meanwhile, the Duma is getting ready for a bill on Russia’s first cryptocurrency regulation bill. The draft has been pending until last week until a second draft was rolled-out on top of other laws.
