The Russian Association of Corporate Treasurers is joining the nation’s main bank in trialing the authorities run Masterchain blockchain system, the team announced last week. The institution is testing Masterchain to facilitate communication inside the national banking system, in accordance with the Masterchain white paper. This could mark the most recent move to utilize the platform to replace the SWIFT inter bank communication network, a use case that was first discussed in April 2018. The platform was created by the nation’s FinTech Association in cooperation with Russia’s 14 largest banks, including VTB. In accordance with the white paper, the system will include Russian banks and government agencies accountable for contract registration and marketplace regulation.
FinTech is making claims switching to Masterchain in processing mortgage contracts will decrease operating costs up to 5 time and instead of days the transactions will take minutes. The project is also expected to generate a KYC mechanism based on digital identity in order that banks are going to be capable to share credit stories and details on fraud cases without breaking bank secrecy. The system is also going to deal with financial statements and letters of credits.
Nevertheless, as previously mentioned by CoinDesk, the greatest aim for Masterchain it is still worth changing SWIFT. Particularly, concerns that U.S. Or even European Union sanctions against Russia from 2014 could possibly remove the country from the SWIFT system have resisted Russia’s experimentation with alternative financial communication systems. Previous tests have shown issues with processing distinct document format. Russian flag picture via Shutterstock. The leader in blockchain news, CoinDesk is a media outlet that strives for the greatest journalistic standards and complies with a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.