Russia's Central Bank to Launch Blockchain Powered E-mortgages

The Central Bank of Russia plans to build and develop an e-mortgage (digital mortgage) that will be powered by a blockchain known as Masterchain.

Masterchain is the first blockchain platform in Russia that is certified by the Federal Security Service (FSB). The Masterchain is reportedly an ethereum based blockchain launched back in 2017 by an entity affiliated with the Bank of Russia known as Fintech Association.

Oleg Skorobogatova, the first deputy governor at the Central Bank of Russia believes that Masterchain has recently started to support digital mortgages and this will help in building upcoming platforms. The proposal for a digital mortgage project has been submitted to the Government of Russia and the Federal Service for State Registration, Cadastre and Cartography.

A Previous Attempt

This won’t be the first time an attempt has been made in using Masterchain to power Digital Mortgages. A Russian subsidiary of Raiffeisen Bank International published mortgage documents back in September 2018, these documents contained parties in the transaction, the credit loan and it’s duration. The property was purchased in Master Chains Decentralized Depository System (DDS).

Russia and Crypto

Russia’s Central Bank trying to build a platform on blockchain is a bit unexpected, this is because the government of Russia has treated Crypto very badly. They have even passed the law that any misuse of Crypto funds could lead a citizen to punishment – 7 years in prison and paying up to $27,800.

There has been a lot of controversy in Russia lately over Cryptocurrencies.

Russians are expected to purchase cryptocurrencies through exchange outside of Russia and have to add it to the tax report.

Anatoly Aksakov, chairman of the Russian State, Duma’s Financial Market Committee said users could own cryptocurrencies like Bitcoin and other assets, but they do not want Crypto exchanges within the territory or Russia.

Aksakov said