September 18, 2020

Ministry of Communications plans to reduce counterfeit turnover using blockchain

According to the Ministry of Digital Development, Telecommunications and Mass Media of Russia, the deployment blockchain will help reduce the shadow economy and the turnover of counterfeit products.

According to the ministry, the implementation of the system onBased on distributed ledger technology, counterfeit turnover in Russia will be reduced by 853 billion rubles by 2024. According to the agency, the deployment roadmap for the Distributed Registry System has already been approved by the Presidium of the Government Commission on Digital Development.

The document notes that deploymentblockchain will allow "to achieve an indirect economic effect, expressed in the form of a reduction in the shadow economy and the turnover of counterfeit products by ensuring transparency, consistency and automated updating of data."

Using technology is also supposedto achieve a direct economic effect - to obtain additional revenue and reduce costs - thanks to the digitalization of all processes and a decrease in the number of intermediaries. According to the ministry’s calculations, the aggregate forecasted revenue in five years may reach 782 billion.

“Thus, the total economic effect will reach 1.635 trillion rubles by 2024,” the document says.

The ministry also suggests that blockchainwill reduce the cost of providing public services by 75% after 3 years. In addition, the deployment of technology in local voting systems should increase the level of public confidence in the election process by 30% by 2021.

Despite plans for the active implementation of blockchain in various areas, regulation of cryptocurrencies in Russia has not yet been adopted.

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