Sberbank Completes Blockchain-Based Foreign Exchange Repo Transaction With Interros

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State-owned Russian banking entity Sberbank and Moscow-
based private equity firm Interros Company have successfully
completed a foreign exchange repurchase agreement with the
use of blockchain technology, according to Reuters Russia.

Sberbank executive Andrei Shemetov notified Reuters the
transaction was legally binding and was carried out with the help
of smart contracts and digital signatures through the bank’s IT
platform. Additional details about the transaction were not
released, but Shemetov indicated it “corresponded to the
average volume of the interdealer repo transaction.”
Bullish On Blockchain Technology

A news release from Sberbank said the transaction was carried
out with the Hyperledger Fabric platform, with the smart contract
programmed in Go.
Shemetov believes using blockchain for repo transactions has
several advantages over traditional solutions, and pointed out
how,

“In the future, concluding deals through the
blockchain platform will cut operational costs
and reduce mistakes due to automation, as
well as will increase transparency and trust
between all participants of the financial
market.”

Interros First Deputy CEO Olga Zinovieva said the company is
“glad that we have made the first step towards the digital future
in partnership with Sberbank, the leader of the Russian banking
segment.”

Industrial Blockchain Adoption

In mid-November, Sberbank CEO Herman Gref made headlines
after a few of his remarks were picked up by Russian state news
agency TASS. At the time, Gref noted the hype surrounding
blockchain had passed and it was now at the industrial
development stage. His opinion was it “will take a year or two to
be applied on an industrial scale.”

The CEO has reportedly been bullish on blockchain’s
commercial potential for a few years now. He has also been a
notable supporter of cryptocurrency and has taken steps to
stand in opposition to governmental crackdowns. However, he
does not necessarily see a clear path forward for crypto in
Russia due to the centralized role of the state.

He mused in October how cryptocurrencies do not have good
prospects for the next decade because “it’s not likely that any
state is ready to part with the centralized money supply model.”

Source : https://www.cryptoglobe.com