Prime Minister of Russia Sets Sail for Digital Economy

The Prime Minister of the Russian Federation has said that a digital economy should be a priority for the country.

According to the report published by domestic news outlet Ria Novosti on January 16, Mikhail Mishustin, earlier confirmed to the position of the Prime Minister, outlined several central priorities for his work, and stressed on the need for institutional reforms in Russia.

Mishustin stated that the country should leverage modern information technologies, including the creation of a digital economy program in Russia:

“The state should become a digital platform that is created for people.”

Mishustin announced that after the resignation of the former Russian Prime Minister Dmitry Medvedev and the government. This announcement comes after Russian President Vladimir Putin send a message to the Federal Assembly, pointing out important changes to the country’s constitution.

Importance of blockchain for large Russian companies

Large Russian companies including those with state significance are starting to implement and test blockchain for their operations.

Last December Russia’s national energy grid operator Rosseti introduced a payments project for retail electricity to automante payments and make them transparent for companies and consumers.

In November 2019 Russian largest bank, a state-owned Sberbank piloted a blockchain for repurchases (or repos). The bank got a patent for smart contract-based technology, which automates repos.

Famous people in the crypto industry also celebrated Russia’s role in innovations. Changpeng Zhao, CEO of crypto exchange Binance, praised talented programers who come from the country and called Vladimir Putin the most influential person in the blockchain industry.

Russia still lacks clear crypto standards

Digital currencies still need legal clarification in Russia. The authorities tried to do that several times, with Vladimir Putin, Russian’s Supreme Arbitration Court and the Financial Action Task Force urging the development of legal framework for cryptocurrencies.

In May 2018, Russian parliament passed a bill named ”On digital financial assets”, but returned back to the first reading lacking clear definitions of primary concepts, such as mining, cryptocurrencies and tokens.

Ban on crypto and Bitcoin confiscation

Furthermore, in November 2019, news surfaced that Russia plans to ban crypto payments for goods and services. The press department of central bank commented on the matter: “If a decision is made to ban cryptocurrencies as a means of payment at the level of legislation, we consider it appropriate to support this position.”

Earlier it was reported that Russia prepares to do the impossible: allow police to confiscate Bitcoin.