Russia’s Sberbank Opens a Blockchain Lab In this Time of Cryptocurrency Fever

The cryptocurrency fever has made inroads to the minds of many individual enthusiasts and institutions alike and at the heart of this is the blockchain technology. Banking institutions which were earlier skeptical regarding the blockchain technology have now started to recognize its potential for making instant, secure and low-transactions.

Blockchain technology is a transparent and distributed computing system that makes use of computing cryptography to store information in a continuously growing list of records, called blocks.

Many banks have already started their experimentation with the blockchain technology. Blockchain startup ‘Ripple’ is aggressively working with banks thereby allowing the institutions to use the XRP (Ripple) tokens and implement this solution.

In yet another major and recent announcement, Russia’s biggest lender - Sberbank - has launched a dedicated lab which will work on several blockchain-based pilot projects. As per reports, the bank is currently working on more than 20 projects that include joint solutions Russia’s largest consumer electronic retail chain M.video, a Russian steel major Severstal and the Federal Anti-monopoly Service.

The banking giant released an official statement about this announcement saying, “Sberbank has opened a blockchain laboratory which will test cutting-edge blockchain technologies, generate ideas to develop blockchain-based solutions, create product prototypes, carry out pilot projects, and implement applied business solutions for Sberbank Group.”

The bank also said that its blockchain technology will interact with other Sberbank laboratories which in turn will be providing services to other participants in the market like several business associations as well as start-up companies. These laboratories also aim to promote and popularize blockchain technology along with making educational programs.

Igor Bulantsev, Sberbank’s senior Vice President said in a statement "Blockchain can significantly change many business areas within the financial market, traditional banking and client servicing. The development and the implementation of the newest technologies is not just a part of Sberbank's competitiveness, but a set piece of the bank's future as a technology company. The blockchain is an instrument that improves the effectiveness of cooperation between the market participants. Thus, by creating the laboratory, Sberbank is contributing to the future of the banking system and Russia itself.”

Back in October 2017, Sberbank was the first Russian bank to join the Enterprise Ethereum Alliance (EEA). Upon joining EEA, Lev Khasis - first deputy chairman of the Sberbank executive board said: "Sberbank's joining the Enterprise Ethereum Alliance is an important stage in achieving the goals on our technology agenda. This membership implies for us access to cutting-edge developments and international expertise in terms of distributed ledger technologies."

Head of Sberbank Herman Gref also expressed his optimism over the commercial development of the Ethereum blockchain and says that it will occur soon. During his interview on the Russian television, Gref talked about the existing state of development saying "So far we have implemented 15 different projects, but they are still experimental in nature. The technology is not yet ready for commercial implementation, it will take another year, maybe a year and a half or two, so that we can start using it."