Rostec, a Russian state-owned holding conglomerate, has proposed the implementation of a blockchain-based government data storage system. According to a report by local outlet Kommersant, Rostec believes that the gains will be in the tune of $25 billion.
Rostec unveiled the roadmap during a blockchain conference held last week. The roadmap was prepared by Rostec’s structural body, the Novosibirsk Institute of Programming Systems (NIPS).
According to NIPS, the development of such a system would cost the country 85 billion rubles ($1.3 billion). However, in five years, its impact on the economy would be worth 1.6 trillion rubles ($25.4 billion). The effect could even be higher, the roadmap notes, being that there will emerge new entities with the integration of blockchain technology. It will be integrated both in government processes as well as by businesses.
“The development of a distributed registry system will be an effective tool for achieving the development goals of the Russian Federation in terms of the realization of the economic and social potential of the technology,” part of the roadmap notes.
NIPS also recognized that so far, Russian developers have had to rely on foreign blockchain platforms which they build on top of. They include Hyperledger and the Ethereum blockchains. While these systems are open source, Russia is best served by its own blockchain network, NIPS believes.
Despite the great promise, there still lies some impediments. Vasily Brovko, Rostec’s special instructions director explained, “One of the main challenges for the implementation of distributed registry systems within the corporate sector and government agencies is finding the right projects to implement and achieve the effects – economic, social, solving data security problems.”
The lack of a clear regulatory framework in Russia for the blockchain industry has also been stifling the development of the industry. Yury Pripachkin, the head of the Russian Association of Cryptocurrency and Blockchain Association described the regulatory ambiguity as a “catastrophic obstacle on the path blockchain adoption.” The country needs to adopt crypto and blockchain regulation before the end of the year, he believes.
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