Large Russian Bank Signs Contract With Ethereum

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Ethereum has been working to find its place in the market and has done just that. The Russian state-owned bank VEB has signed a longterm contract with the Ethereum foundation for the purpose of developing and implementing a blockchain-based government use.

At a meeting this last week of August, the Russian bank Vnesheconombank or easier said, VEB, has signed into an agreement with the foundation founder and chief architect of Ethereum, Vitalik Buterin.

The official announcement from VEB shows that the partnership will mean “a long-term and effective partnership in the implementation of projects.” This will include the development of a distributed registry for using the Ethereum blockchain.

The launch of this has gone next to a wife Russian statement from the government that they are going forward with a digital-forward agenda under direct orders from Russian President Vladimir Putin.

Ethereum co-founder Vitalik Buterin stated that “Cooperation between Ethereum and VEB gives a unique opportunity to engage in research and development on the use of blockchain technology for public administration and accelerating the adoption of this technology to government organizations in the Russian Federation.”

The partnership comes only months after Buterin and Putin met at an economic forum in St. Petersburg earlier in the year. The Bank of Russia, Russia’s central bank, has developed and formed ‘Masterchain’, which is an Ethereum blockchain prototype that allows for messaging between banks in the Russian financial system alone.

Russia has previously had a hard stance on the use of cryptocurrencies, so this shows a new state of mind regarding the advanced technology. Many developments have been underway to help the country adopt a new policy of utilizing digital currencies for the benefit of the country. Russia’s national standards authority has created plans to develop blockchain regulations and standards prior to the industry’s launch in 2019.

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