The Central Bank of Russia has developed a digital mortgage platform powered by a domestically developed blockchain called Masterchain.
On May 28, it has been reported by local state-owned news agency Ria that according to Olga Skorobogatova, the first Deputy Governor at the central bank, Masterchain has recently started to support digital mortgages, which forms a foundation for the upcoming platform.
However, the financial institution has already submitted the proposal for its digital mortgage project to the government and the Federal Service for State Registration, Cadastre, and Cartography.
It has been analyzed that Masterchain is reportedly the first blockchain platform in Russia to be certified by the Federal Security Service (FSB).
The e-mortgage project will reportedly be powered by Masterchain, a blockchain approved by the federal counterintelligence service https://t.co/23sr7gt7Sj — Cointelegraph (@Cointelegraph) May 28, 2020
According to previous reports, it is a permissioned, Ethereum-based blockchain that was launched in 2017 by the FinTech Association, an entity affiliated with the Bank of Russia.
It would not be the first time Masterchain is used for e-mortgages, as in September 2018, a Russian subsidiary of Raiffeisen Bank International reportedly published mortgage documents containing data on the parties in the transaction, the credit loan, and its duration, and the property purchased in Masterchain’s decentralized depositary system (DDS).
In spite of the central bank’s blockchain endeavors, the Russian government at large has been hostile toward cryptocurrencies.
Thus, earlier this month, local lawmakers suggested punishments of up to 2 million rubles ($27,800) and seven years in prison for the illegal turnover of digital assets and cryptocurrencies.