Russian government-backed corporation Rostec intends to cutting spendings on the blockchain development in the country by at least l%.

According to Rostec's roadmap, the organisation is planning to spend 28.four billion rubles ($453.2 million) on the development of blockchain technologies in Russian federation past 2024, instead of initial 55 billion ($877.8 one thousand thousand) to 85 billion rubles ($1.3 billion). The news was reported by domestic news outlet Kommersant on Jan. 27.

The corporation detailed that the introduction of blockchain tech into the product labeling system will crave 650 million rubles ($10.3 1000000), into healthcare system one.17 billion rubles ($18.6 one thousand thousand), of which 575 million rubles ($ix.1 million) will be allocated to the tracking system of counterfeit and pharmaceuticals consumption. The implementation of blockchain in the housing and utility services will ostensibly crave 475 million rubles ($vii.v 1000000).

Revision of blockchain'southward potential outcome on economy

Rostec has revised their assessment of the potential direct and indirect economic effect of blockchain development in the country, whereas earlier versions of the roadmap suggested significantly larger investments in the applied science. The downgraded forecast of the economic effect is ostensibly connected to the change in the macroeconomic state of affairs.

Rostec's spokesperson stipulated that currently there is a change in the perception of the technology, "a self-cleaning of the market from copy projects that do not accept a evolution strategy and a sure market niche," while the Russian market in these weather condition is developing well-nigh smoothly and is choosing the path of "less risky development."

The corporation has sent the certificate to the Ministry building of Communications and the Analytical Center for the government of Russia for approval.

Russian federation'southward turn to blockchain

Worth noting, the move comes in the wake of the appointment of the new Prime Minister of the Russian federation, Mikhail Mishustin, who called on the country to prioritize development of the digital economy.

In the concurrently, Russia has implemented a number of blockchain projects in various sectors. Final December, Russia'southward national energy filigree operator Rosetti began testing a blockchain solution for payments in the retail electricity sector. The projection aims to automate and make transactions betwixt energy producers, suppliers and consumers more transparent.

The country'due south mining and smelting behemothic Nornickel also commenced testing its platform for digital metal tokens in collaboration with physical commodities trading group Trafigura Group Ltd., metals finance and logistics house Traxys SA and materials technology and recycling group Umicore SA.