Russia Will Test Blockchain Technology in the Real Estate Sector

Russia will experiment with the application of blockchain technology to data from the Unified State Register of Real Estate. The trial will run for the capital city of Moscow and the results will be released in August next year.

The Russian government announced in a document that it would run an experiment on the use of blockchain technology in the Unified State Register of Real Estate. The project, which is conducted from budget money, refers to the territory of Moscow only and will start at the beginning of next year.

The document says:

“Within the framework of the program “Digital Economy of the Russian Federation,” the government of the Russian Federation decides to conduct an experiment on the use of blockchain technology in Moscow to monitor data reliability in the Unified State Register of Real Estate.”

It is believed that the experiment’s results will be announced next year in August.

The entities responsible for organizing the project predict that blockchain technology would grow people’s confidence regarding real-estate transactions and would support the security of property rights.

If participants of the project will come with a positive verdict on the technology, they will propose relevant changes in the legislation to implement blockchain technology in the Unified State Register of Real Estate.

The Federal Service for State Registration, Cadastre and Cartography, the Federal Tax Service, and the Government of Moscow are responsible for executing the project.

The document shows that the Bank for Development (VEB), Sberbank, and Rostelecom, a leading provider of long-distance telecommunication services, are also encouraged to get involved in the experiment under direct recommendation from the Russian government.

Additionally, the Ministry of Economic Development of the Russian Federation is expected to analyze the results provided on August 1, 2018, and come up with a report to the Government of the Russian Federation before September 1, 2018.

Interestingly, despite Russian government’s skepticism in regards to cryptocurrencies, the country seems to be open for the implementation of blockchain technology. And it’s not only about blockchain – when it comes to a state-controlled cryptocurrency, Russia doesn’t mind trying it. Recently, we reported on their state-issued cryptocurrency called CryptoRuble, which is not going to be decentralized and will be controlled by the Russian government.