Belarus Central Bank Approves Blockchain Use For Bank Guarantees

Belarus
24 July 2017

The central bank of Belarus has cleared the way for domestic banks to use blockchain as part of their processes of transmitting bank guarantees.

The move, revealed late last week by the National Bank of the Republic of Belarus, came as part of a wider initiative focused on the tech, which saw the central bank organize and oversee its own blockchain network through its Settlement Center. Notably, the National Bank indicated that its use of the tech was not related to digital currencies, clarifying that “at the same time, there are not any conceptual restrictions as to the areas of the blockchain use in the IT sphere.”

According to a July 19 statement, a resolution on blockchain was issued earlier this month by the central bank, aimed at opening up the tech for use by Belarusian banks to issue bank guarantees, or promises to cover losses on debt.

The central bank went on to say:

“The new mechanism of maintenance of the register of bank guarantees will ensure the mutual access of the economic entities of the states being members of the Eurasian Economic Union to the procedures of the government procurements of goods (works, services).”

Next steps, the statement explained, include applications in the Belarusian stock market sector, including its over-the-counter marketplaces for securities.

“The implementation of the project will make it possible to organize this register on the qualitatively new level, that will create conditions for improvement of transparency and further development of the stock market in the Republic of Belarus,” the central bank said.

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