Russian Government Partners with Private Firms to Launch Initiatives for Blockchain Tech, IoT

Last week, Russian President Vladimir Putin spoke live on his annual show, "Direct Line." During the program, Putin was asked about blockchain by a citizen, and his answer was somewhat vague, giving only hints here and there at what the country plans regarding the technology.

But the nation's stand on the matter might be clearer now after two private Russian firms and two state-owned corporations partnered to cultivate blockchain technology, Cointelegraph reported. The partnership includes MegaFon, USM group, Rostec, and Gazprombank, the last two of which are run by the Russian government.

Called MF Technologies (MFT), the partnership worth $450 million means to allocate its collective resources to creating a financial outline through Gazprombank. Megafon told local news publication TASS that the partnership’s efforts will go beyond the financial sector and encompass different industries where blockchain tech and the Internet of Things will be the foundation.

Yet even with the partnership, a definite picture has yet to form as to what exactly these projects are going to create. Moreover, despite President Putin being reticent about the subject, there’s little doubt that the country has big plans for blockchain and its uses. The influential leader said Russia is observing how blockchain is taking shape to best determine how it can "participate in the process."

It can be recalled that Russian delegate Grigory Marshalko told a representative during last year’s International Standards Organizations that blockchain will belong to them. “The internet belonged to America. The blockchain will belong to the Russians,” said Marshalko.

What surprised other delegates of the gathering was that Marshalko was also working for the F.S.B., the intelligence agency that inherited the vacated position left by the K.G.B. The previous sentiment coupled with Marshalko’s background had other delegates worried. Their apprehension stemmed from the fact that certain countries might recommend moves that would render blockchain tech susceptible to cyber-attacks and espionage.