Russia’s Largest Bank to Launch Its Decentralized Platform
Russia’s Largest Bank to Launch Its Decentralized Platform.
Sberbank, the biggest bank in Russia, is pushing ahead with the plan to deploy its decentralized finance (DeFi) platform. The bank is now getting ready to test out the product within the next few months.
The head of Sberbank’s Blockchain Lab, Konstantin Klimenko, said on February 3 that the financial institution anticipates beginning open trials of its DeFi platform by May 2023. This information was published by the regional news outlet Interfax.
Critics argue that the system has few applications in the real world and suffers from the same drawbacks as the cryptocurrency world, such as a lack of regulation and a vulnerability to fraud and money laundering. Proponents of the system argue that it could reduce the costs of banking and could eventually even replace traditional banks.
Traditional financial firms are examining how they might enter this market and how they can incorporate decentralized finance technologies into their already regulated business models.
According to statements made by Konstantin Klimenko, director of products at Sberbank’s blockchain laboratory, the bank plans to begin open testing of its platform in March, with the goal of beginning commercial operations by the end of April.
Klimenko added that the DeFi platform that Sberbank is developing would be built on the Ethereum blockchain, which is now the second-largest blockchain in terms of market capitalization behind bitcoin.
Over the course of the previous several years, Sberbank has had a difficult time launching various blockchain products owing to repeated delays in registration by the Russian central bank.
Sberbank had anticipated launching its digital asset issuance platform in 2021, but it did not gain clearance from the Bank of Russia until the spring of 2022. The Russian government owns 50% plus one share of Sberbank, making it the institution’s largest stakeholder.
In November, at an event that Sber Blockchain Laboratory sponsored, Sberbank made public for the first time its intention to link its platform with Ethereum.
Because the bank’s blockchain network is integrated with the leading smart contract ecosystem, it is now possible for developers to easily move smart contracts and whole projects from one blockchain network to another.
Source: binance news