Sber, Russia’s largest bank, previously known as Sberbank has stated that its proprietary blockchain platform will become compatible with the Ethereum network.
The bank stated that it will use a modified version of Ethereum to develop its own DApps, smart contracts, and other blockchain applications. This will allow its developers to seamlessly transfer smart contracts and entire projects through the bank’s blockchain network and open blockchain networks.
Sber’s decision to adopt Ethereum compatibility has been met with excitement from the larger blockchain community. Experts believe that this move will lead to increased innovation around blockchain technology.
One reason for Russia’s interest in blockchain technology is the desire to reduce corruption in government institutions and improve transparency among officials. Sberbank estimates that the Russian Central Bank can save up to 80% on transaction costs by using blockchain technology over traditional methods.
In a press release posted by the bank, it was announced that its blockchain will receive technological compatibility with Ethereum, the largest Decentralized Finance ecosystem, while also providing consolidation with the Metamask wallet, which is a well-known decentralized wallet service. This is a huge step forward in the blockchain world, as it will allow users to create numerous applications on Sberbank’s platform.
This consolidation will also allow users to make transactions with tokens and smart contracts present on the bank’s platform. Members will each be given their own tokens, and with the bank’s information system, will be able to create their own smart contracts. This makes it possible for settlements to happen in rubles.
I am sure that taking into account the rapid development of Web3, platforms that support different blockchain protocols will be increasingly popular. And sber will be able to unite developers, corporations, and financial institutions both in the framework of joint market research and in the development of practical business applications.
Director of the Blockchain Laboratory of Sberbank, Alexander Nam
He also added that the company Lab is working with external developers together with partner companies and he is delighted that the decentralized finance (Defi) application was soon going to be part of Sber company.
Sber has been working greatly towards the development of blockchain over the last years and this is seen as a major step in that regard. However, it has also filed an application with the Bank of Russia which is the country’s central bank to launch a blockchain platform for its stablecoin ‘Sbercoin’ the previous year.
The Russian owns a major share in Sber bank whereby 50%+1 of its share belongs to the government while the rest belongs to institutional investors. Sber is known as a state-controlled bank, with many stores and firms spread across major cities in Russia.
Sber bank works to change Russia policy
However, as this Russian banking giant continues to work to develop its blockchain, Russians are still not allowed to use cryptocurrencies as a means of payment. In early 2020, cryptocurrencies were banned as a payment method in Russia. This banning of cryptocurrencies was facilitated by the authorities claiming that they do not have any backing.
Although Russia does not currently approve cryptocurrencies, it is doing all it can to ensure blockchain technology improves its nation’s economy. The country’s central bank was the first to test a commercial blockchain.
Sber is one of Russia’s largest banks and it intends to be a great help in the country’s adoption of blockchain, however, they’re not alone. Russia is also home to other major banks which have adopted blockchain technology for their operations. These developments are exciting, especially with the Russian government looking to increase its adoption of blockchain via the ‘National Blockchain Initiative.’
