Mar 22, 2023

March 22, 2023 - Advertisement - According to the Deputy Chief Executive Officer of Sberbank, blockchain technology can help solve the current issues with settlements. Bancor revealed that Russia’s largest bank is working with other financial institutions to develop a blockchain-based payment application. Sberbank sees the solution to Russia’s settlement problems in the blockchain With major Russian banks disconnected from the main global interbank payment system, Intense Due to Moscow’s war on Ukraine, blockchain will help solve the problem with payments, Alexander Vaidykhin, first deputy CEO of Sberbank, is convinced. - Advertisement - “It is blockchain technology that makes it possible to solve this issue because it is a distributed ledger, there is no single point of decision making, no center, no knife switch that can be turned off,” by Interfax Quoted Vaidyakhin explained the news agent. “Everyone has everything recorded, there are special protocols that make it possible to do it confidentially,” the executive added during a meeting of the Federation Council’s budget and financial markets committee, the upper house of the Russian parliament. - Advertisement - Majority state-owned Sberbank, Russia’s largest bank by assets, is currently researching applications of blockchain technology in collaboration with other banking institutions and the Central Bank of Russia. Vaidyakhin, who believes that blockchain will become even more relevant in 2023, emphasized: The next generation of payment systems is blockchain. Speed ​​and privacy issues are overstated in latest protocol, says Vedyakhin The banker also noted that crypto-related technology has evolved over the years and highlighted some outstanding issues that had to be resolved. These include the efficiencies of the blockchain platform and the privacy of transactions. - Advertisement - “The first was speed. What we were seeing before did not allow us to process a large number of transactions. We now believe that this problem has largely been resolved. The second was privacy… if our If you have a transaction, and 10 million other people see it, you wouldn’t want to do it. Now this problem is also solved in the new protocol, ”explained Alexander Vaidyakhin. Several Russian banks, including Sberbank, were targeted with sanctions imposed by the US and the European Union following the invasion of Ukraine in late February, 2022. Financial sanctions severely limited Russia’s access to the global financial system. Last June, Sberbank CEO Hermann Gref said that the bank has begun work on setting up an international settlement system as an alternative to SWIFT, and plans to complete it within a year. Russia’s manufacturing and technology conglomerate Rostec announced a blockchain-based platform with a similar objective in the same month. Legalizing crypto payments for cross-border settlements has also been considered as an option. Do you think Russia will try to use blockchain technology and cryptocurrencies to circumvent sanctions? Share your thoughts on this topic in the comment section below. disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. bitcoin.com Does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Credit : news.bitcoin.com