Russia Will Invest More Than $8 Billion In Blockchain Technology

Russia will invest up to $8 million in blockchain technology until 2024. There’s a 50% lower rate than the previous figures which the strategy could still help the Russian economy save some money so let’s read more in the latest blockchain news.

According to Rostec, the state-owned tech corporation, blockchain spending in the next few years will be reduced to 28.4 billion rubles from the previously voiced figure of 55-85 billion rubles. The funding will be allocated to the implementation of blockchain technology in the supply chain management and other industries including the housing sector according to the local media agency Kommersant according to the Rostec roadmap.

The main reason why spending has been decreased is because of the ‘’universal euphoria’’ around the blockchain technology which has been weakening according to a few experts. Out of the 28.4 billion rubles planned for blockchain, 9.5 billion will be allocated from the budgetary funds while 18.9 billion from the extrabudgetary funds. The distributed ledger technology which is a term comprising blockchain will help the Russian economy to save up to 500 billion rubles and to collect up to 600 billion rubles in the form of taxes. The blockchain effect on Russia’s economy will surpass 1.1 trillion rubles which are about $17.5 billion. The document with the roadmap was sent for approval to the ministry of communications and the Analytical center for the government as well.

According to the project that was proposed by Rostec, Russia will invest 650 million rubles to introduce the technology in the labeling systems. The launch of the distributed ledger technology (DLT) in healthcare will require up to 1.17 billion rubles of which 575 million will go to the monitoring systems that prevent counterfeit drugs.  More than 475 million rubles will go for further implementation of blockchain in the housing and communal services and 350 million of it will be spent on a platform that will account and distribute utility bills. Another 475 million rubles will be allocated to a collecting system, monitoring resource consumption system and an accounting system.

Rostec revised the initial plan of the potential direct and indirect economic effect that the blockchain development can have in the country where the earlier versions of the roadmap showed a lot more investments in the technology. The bad forecast of the economic effects is heavily related to the change in the macroeconomic situation.