Bank of Russia Pushes for Fintech

March 3, 2016         By: Ryan Kennedy

Yet another central bank of a major nation is touting financial technology as the future of finance.

Earlier in the week, the Bank of Russia announced that it would like to see further advancements and integration in Russia’s fintech sector.

Thus far in the fintech race, innovation from Russia has been muted. But with help from the country’s main financial center, fintech in Russia may begin to take off.

One reason why fintech may have not taken off in Russia could be due to Russia’s strict financial regulations, especially over capital controls.

This strictness has become even more extreme in the past two years and the Russian economy reels with Western sanctions. But the Bank of Russia can no longer ignore the power and influence of fintech, saying “the development of a modern financial market in Russia is intertwined with the evolution of financial technology.”

One of the most sought after developments by the Bank of Russia is bitcoin technology.

The central bank said that bitcoin could both increase banking efficiencies while at the same time creating global standardizations, which would be a much welcomed addition in Russia.

The Bank of Russia is also creating a self-regulating board that allows industry players to collaborate on fintech efforts with others the country.