The Russian Central Bank is actively exploring the application of blockchain technology, and localized digital currency is still expected to be issued

Vadim Kalukhov, head of the financial technology department at the Bank of Russia, said in an interview that most financial regulators around the world have a high opinion of blockchain technology.

When it comes to blockchain technology, financial regulators in various countries praise it. I have never heard of a country banning the use of this technology.

Kalukhov said that the Russian central bank is very supportive of local companies exploring the application of blockchain technology to improve operational efficiency. At the same time, he also mentioned that blockchain technology can reduce transaction costs in the financial market.

The Bank of Russia and the entire financial market believe that blockchain technology can reduce transaction costs. We are currently working with regulators to explore the practical applications of distributed ledgers and gain a deeper understanding of their benefits to market development and the opportunities they bring to consumers.

Kalukhov’s comments echo previous official statements by the Russian Central Bank, which in February announced the creation of a fintech and research and development department to study the impact of blockchain technology and distributed ledgers on the country’s financial system.

Kalukhov also mentioned other applications of blockchain technology in the financial sector, such as information sharing, notary services and real estate registration.

When asked about the details of the launch of Russia’s national digital currency, Kalukhov responded that the issue is still under discussion.

The issuance of a Russian digital currency remains at the top of the national agenda, as we have seen the interest of the cryptocurrency community shift from private digital currencies to national digital currencies.

He also cited the transaction limits of digital currencies — typically only 3到7个transactions per second — as a major obstacle to the launch of a digital currency in Russia:

Russia's current payment system has been fully upgraded, but this is obviously far from enough.