Russian banking giant Sber reveals Ethereum blockchain partnership

Sber, Russia’s largest bank, formerly known as Sberbank has stated that its proprietary blockchain platform will become compatible with the Ethereum network.

The bank stated that it will use a modified version of Ethereum to develop its own DApps, smart contracts and other blockchain applications. This will allow developers to seamlessly transfer smart contracts and entire projects through the bank’s blockchain network and open blockchain networks.

Sber’s decision to adopt Ethereum compatibility has been met with excitement from the larger blockchain community. Experts believe that this move will lead to increased innovation around blockchain technology.

One reason for Russia’s interest in blockchain technology is the desire to reduce corruption in state institutions and improve transparency among officials. Sberbank estimates that the Russian central bank can save up to 80% on transaction costs by using blockchain technology over traditional methods.

In a press release posted by the bank, it was announced that their blockchain will receive technological compatibility with Ethereum, the largest decentralized financial ecosystem, while providing consolidation with the Metamask wallet, which is a well-known decentralized wallet service. This is a big step forward in the world of blockchain, as it will allow users to create a variety of applications on Sberbank’s platform.

This consolidation will also allow users to transact with tokens and smart contracts on the Sber platform. The members will each receive their own chip, and will be able to create their own smart contracts with the bank’s information system. This enables settlements to take place in rubles.

I am sure that considering the rapid development of Web3, platforms that support different blockchain protocols will become increasingly popular. And sber will be able to unite developers, companies and financial institutions both within the framework of joint market research and in the development of practical business applications.

Director of the Blockchain Laboratory of Sberbank, Alexander Nam

He also added that the company Lab works with external developers together with partner companies, and he is happy that the decentralized financial application (Defi) would soon become part of the Sber company.

Sber has been working hard towards the development of blockchain in recent years, and this is seen as a big step in that regard. However, it has also submitted an application to the Bank of Russia, which is the country’s central bank, to launch a blockchain platform for its stablecoin ‘Sbercoin’ the previous year.

The Russian owns a large share in Sber bank where 50%+1 of his share belongs to the state while the rest belongs to institutional investors. Sber is known as a state-controlled bank, with many stores and firms spread across major cities in Russia.

Sber bank is working to change Russia’s policy

But while this Russian banking giant continues to work on developing its blockchain, Russians are still not allowed to use cryptocurrencies as a means of payment. In early 2020, cryptocurrencies were banned as a payment method in Russia. This ban on cryptocurrencies was facilitated by the authorities claiming that they have no support.

Although Russia does not currently approve cryptocurrencies, it is doing everything it can to ensure that blockchain technology improves the country’s economy. The country’s central bank was the first to test a commercial blockchain.

Sber is one of Russia’s largest banks, and it intends to be a big help in the country’s adoption of blockchain, but they are not alone. Russia is also home to other major banks that have adopted blockchain technology for their operations. This development is exciting, especially with the Russian government looking to increase the use of blockchain via the “National Blockchain Initiative.”