Ministry of Communications plans to reduce counterfeit turnover using blockchain

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

According to the ministry, the introduction of a system based on distributed registry technology will reduce the counterfeit turnover in Russia 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 the deployment of the blockchain 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.”

With the help of technology, it is also expected to achieve a direct economic effect – obtaining additional revenue and reducing 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 the blockchain will 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. Last week it became known that the law on cryptocurrencies is again delayed. Recall that the Prime Minister of the Russian Federation Dmitry Medvedev in August instructed the responsible departments to adopt a law on the regulation of cryptocurrencies until November 1, 2019.