Russian Bank Completes Blockchain-Based Guarantee for Mobile Network Carrier

One of the most exciting developments in the crypto industry this year has been Russia’s newfound love for cryptocurrencies and blockchain technology. The country’s government is constantly trying to clarify the crypto laws that are applicable, a private company has made a significant achievement where this technology is concerned. Last week, Russia’s second-largest bank, VTB had completed a new bank guarantee for the largest mobile cellular network carrier in the country MTS, which is based on the blockchain. According to the announcement, a contract had been issued by VTB to fulfill payment obligations of about 392 million rubles, which is the equivalent of $5 million.

The Russian bank explained that the guarantee was hosted on an Ethereum-based blockchain called Masterchain and it was backed by the Bank of Russia. The network carrier and the commercial bank had completed the transaction in real-time, with a digital guarantee issued by VTB with the signature of a qualified official. It was then accepted by MTS and the bank was notified. The Chairman and Deputy President of VTB’s board, Cadim Kulik highlighted the benefits of the blockchain and said that both partners could cut down paperwork with the technology and also save time in completing the transactions. 

He also said that the blockchain helped in reducing the chances of fraud. VTB has now become the third major bank in the country that has incorporated blockchain into its operations in some way. Sberbank Switzerland AG, banking giant Sberbank’s Swiss subsidiary, had announced back in September that they had signed an agreement with Komgo, a Swiss trade finance platform, for using its trade finance service that’s powered by blockchain technology. According to the announcement, the partnership could help in improving trade finance digitization. As commodity trading is a strategic business move for Sberbank Switzerland, it is looking to boost its efficiency in the field. 

Chairman of Sberbank Switzerland’s Board and Global Head of Trade Finance, Evgeny Kravchenko said that there had been a surge in trade finance digitalization in recent years, which prompted a need for market players. He added that they believed their customers would benefit from the enhanced efficiency they would be able to enjoy because of the high-tech and convenient solutions provided by Komgo. Moreover, earlier this month industry news outlets had reported that one of the top banks in Russia, Alfa-Bank, was looking into leveraging blockchain technology for providing its services to freelancers.

According to the reports, the bank is planning to use blockchain-based applications for automating its services to freelancers. The Waves Enterprise blockchain will be used for the platform and it will cover the remuneration and registration processes for freelancers. These processes include payment settlement, income registration and tax settlements. Waves Enterprise’s chief commercial officer, Igor Kuzmichev, explained that the service would target self-employed individuals, including tutors, cleaners, taxi drivers, and more. It will be integrated with any bank, which ensures that users will be able to get payments from anywhere at their own convenience. 

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