Russia has been exploring for several months ways to reduce its dependence on the US dollar and traditional financial systems. This, because of the sanctions imposed by Western countries, following its invasion of Ukraine. Since then, authorities have been working hard to foster the development and adoption of blockchain technologies and crypto payments. This will bypass the restrictions. A giant step has just been taken in this direction.
The issuance of a bank guarantee via the blockchain, a first!
In Russia, the Moscow Credit Bank (MKB) issued a bank guarantee in Chinese yuan. She did this using Masterchain platform, developed by the Central Bank of Russia. In Russia, this is a first applauded by local blockchain players. This innovation also responds to a growing demand for payments in Chinese yuan.
This guarantee in Chinese yuan is linked to the importer’s contracts. The beneficiary will receive Russian rubles at an agreed exchange rate, in case of payment.
The use of a bank guarantee issued via the blockchain makes the document tamper-proof. This assures stakeholders that the warranty cannot be lost. In addition, the beneficiary does not have to wait for a paper version or confirmation of the authenticity of the document by the bank. So many advantages of a guarantee issued via the blockchain, as underlined by the director of the international financing department of MKB, Natalya Bahova.
“This is a logical step, especially for large companies with many subsidiaries, which frequently accept bank guarantees”she added.
The use of bank guarantees via the blockchain is currently in vogue. The guarantee provides, in fact, a great deal of security and efficiency. It should be noted that Russian companies spend almost $12 million a year to verify the authenticity of bank guarantees, and about 0.5% of them turn out to be fake. Meanwhile, the associated risks are estimated at 75 billion rubles, or almost a billion dollars. Hence the interest of resorting to the issuance of guarantees via the blockchain.
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