Russian blockchain services, from payments to pensions
Russian blockchain services, from payments to pensions

Russian blockchain services, from payments to pensions

By Fabio Lugano - 30 Aug 2018

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Putin’s Russia is increasingly at the forefront of implementing new technologies and new Russian blockchain services.

For example, Mastercard will test a new tokenized payment service with 5000 Russian customers.

Basically, the new service allows you to send pre-tokenized payments using the Samsung Pay application, while the security of transactions is provided by the innovative MDES, Mastercard Enablement Service that, using blockchain technology, allows you to ensure very high standards while keeping the overall cost at the same level as normal credit card transactions.

The tokenization involves the creation of a payment token, completely disconnected from the credit card and its data, but independently identified by a 16-digit code, specifically connected to the customer’s smartphone.

Those who want to make a payment have to select the token or create it using their credit card, then select the phone number of who will receive the money and execute the transaction.

This type of service can be used for “traditional” credit card payments, even if the recipient has not yet activated this type of service.

But that’s not all: blockchain tech is also being applied in the Russian public sector.

According to Izvestiya, the Russian state pension fund, PFR, has decided to rely on blockchain and smart contracts in the management of all data relating to pension contributions from employees.

The data deriving from these contracts will then be used to obtain all the state social services, which currently cover 97% of the Russian population.

With this new type of technology, the social security institution thinks it can overcome most of the bureaucratic problems and paperwork needed to access pensions and social services.

In Russia, 465,000 citizens have filed complaints about the violation of their social security rights due to bureaucratic complications and bad work on the part of employees.

The pension institution hopes to reduce this number to zero by removing intermediaries.

The PFR, therefore, aims to provide a shared platform for all care services to which citizens can have an easy and immediate access.

Fabio Lugano

Graduated with honors from Bocconi University, Fabio is a consultant for companies and wounded shareholders of the Banche Venete. He is also the author of "Scenari Economici", and lecturer and analyst of cryptocurrencies since 2016.

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