Russian Central Bank ‘on the Verge of’ Issuing Blockchain Mortgages

Russian Central Bank ‘on the Verge of’ Issuing Blockchain Mortgages

Blockchain
June 12, 2020 Editor's Desk
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Notwithstanding its disdain for all things cryptocurrency-related, Russia’s Central Bank has lost none of its passion for blockchain – and seems to be doubling down on the technology with its fast-expanding plans to publish digital, blockchain-powered mortgages. The Central Bank, which has already issued its Masterchain blockchain network, recently fleshed out its plans – unveiled
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Notwithstanding its disdain for all things cryptocurrency-related, Russia’s Central Bank has lost none of its passion for blockchain – and seems to be doubling down on the technology with its fast-expanding plans to publish digital, blockchain-powered mortgages.

The Central Bank, which has already issued its Masterchain blockchain network, recently fleshed out its plans – unveiled earlier – to do away with traditional mortgages, instead of utilizing an entirely digitized version on the Masterchain platform. The bank’s crypto-skeptic head Elvira Nabiullina addressed the State Duma (Russia’s parliament) with a speech delivered on June 10 and issued in full on its official website.

Nabiullina stated in a statement that the bank was on the edge of “fully digitizing” the mortgage application and issuance process and stepped up its efforts to keep the housing market healthy, notwithstanding the enormous disruption induced by the coronavirus pandemic.

She stated, “The epidemic has accelerated our work [on digital mortgages], and we will ask parliamentarians to support us by making the necessary changes to regulations.” Nabiullina added that temporary biometric solutions utilized during coronavirus lockdown required to be substituted with more sustainable technology.

As earlier reported, Nabiullina is supposed to be in accord with the much-maligned “On Digital Assets” draft bill presented to the Duma in recent weeks. The bill proposes a partial, China-style crypto crackdown, which Nabiullina and the Central Bank have spoken in favor of.

Nevertheless, the nation’s own Ministry of Economic Development is opposed to the draft legislation, that the draft bill was likely a “scare tactic.” Rather, they anticipate a softer version of the bill to materialize sometime next year “at the earliest.”

The central bank chief also made notice of the controversial bill in her speech, saying that the country “needs to move forward and not slow down development.” She added that parliamentary commissions were keen to speed up the regulation pace and said she “warmly supported” this.

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