Medvedev urged to think about the regulation of the blockchain

Dmitry Medvedev

Photo: Alexander Astafyev / TASS

The blockchain technology needs in the legal regulation, otherwise the state will be not ready to solve the problems associated with this technology. This was stated by Prime Minister Dmitry Medvedev

Prime Minister Dmitry Medvedev urged to think about the legal regulation of the blockchain. “It would be desirable that, when we begin to come into contact with the so-called bacchanal, distributed networks, we can at least imagine how will look the main parameters of regulation, what was the role of national legislation, even knowing that the blockchain is a completely Autonomous system,” said Prime Minister Dmitry Medvedev, speaking at the plenary session of St. Petersburg international legal forum (SPILF) on Wednesday, the correspondent of RBC. The value of the blockchain is that technically it did not affected, but “in human society all the more difficult,” said the Prime Minister.

The Prime Minister proposed to discuss in the framework of the FORUM the compatibility of the legal regulation with the technology of the blockchain. “We don’t know of course what will happen, how it will look, how fast it will develop. <…> If you go back to the subject of the Internet, despite the fact that networks have existed for decades, the Internet has existed for three decades, we were not ready (I mean the legal community and the state, and political leaders) to the solution of many problems related to global network”, — said the Prime Minister.

There is an active debate about how to ensure the validity of data in the network, the blockchain, said Medvedev. The solution to the problems of “smart companies” easier to search in the format “soft law”, said the head of the government, “because of global markets, no territorial boundaries, no national localization, binding to a specific regulation”.

In March Dmitry Medvedev instructed the Ministry of communications and the Ministry of economic development to consider the use of blockchain technology in the context of the Russian economy. Then the Prime Minister said that this tool is already used by major banks, corporations and some States. “Technology special, let me remind you, it eliminates the presence of middlemen. The authenticity of the transactions is confirmed by members of the network, since there is no single repository of information, it’s all broken down into blocks and rewrite this information without the knowledge of others or somehow introduced there is impossible,” — said the head of the Cabinet. He also added that blockchain can contribute to “freeing business from unnecessary bureaucracy”.

The blockchain technology allows to create the distributed storage of data identifying each user and security access. A single place where you store all records of participants in the system, does not exist, because the registry contains at the same time all participants in the system and automatically updated to the latest version each time you made the change.

In the banking business, the blockchain technology used for payments and processing of large data sets. In January of this year, Sberbank announced that in the first quarter will launch a pilot document management system between state-owned companies based on blockchain technology. It is planned that at the first stage, in addition to the savings Bank system will be shared by the FAS, “Aeroflot”, oak, “Russian coal” and “Forteinvest”.

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