Chechnya launches blockchain projects for municipal services and real estate.
Authorities of the Russian bank Vneshekonombank (VEB), in partnership with the local government of the capital of the Chechen Republic, Grozny, recently announced the development of two blockchain-based projects, focused on both, municipal and real estate services. Both projects are currently running in a “beta” phase. According to the developers, the first pilot is focused on creating a municipal-level payment system, backed by distributed ledger.
The second pilot will be focused on real estate management in the city, in an effort to increase transparency around local fixed assets. According to Grozny’s Mayor,
“Thanks to the efforts of the VEB bank, platforms based on the distributed ledger were created that improve the transparency of the charges of the public services, as well as allow to securely store the contractual obligations and optimize the provision of services to the residents of the city.”
Currently 20% of local budget is allocated to municipal expenses. These projects should reduce costs significantly in the coming months. These developments are occuring in the midst of a digital growth in the region. Authorities have said to local media that the recently launched pilots are expected to be completely operational within the following three months.
Other blockchain-based projects have been announced for the near future in the Chechen region; including a municipal voting system completely based on blockchain, as well as a price management system for public services of various categories.
VEB began to show interest in the decentralized industry at the end of 2017, when it inaugurated the first blockchain competence center in Moscow, focused on blockchain projects that could be useful for government entities and in the general public sector.
by Samuel Larreal