The growing craze of cryptocurrencies among the global folks is posing a pertinent question regarding whether such digital tokens can be stored in a virtually secured deposit. National Settlement Depository (NSD) of Russia has revealed its plan of building a Decentralized Digital Depository (D3) which shall be based on the Blockchain architecture and will aid institutional investors in storing their digital assets in a regulation-compliant manner. D3 will allow users to maintain their own accounts and hold digital currency based funds in the same.
This news comes in the aftermath of a press release addressed by President Vladimir Putin on 21st October which instructed the Russian government to proceed with the legislation drafting for regulating cryptocurrency space. Nikolai Nikiforov, the communications and mass media minister of Russia had long back announced the nation’s intention of issuing a state sanctioned cryptocurrency called CryptoRuble.
Artem Duvanov, the director of NSD is of the view that D3 will operate in sync with anti-money laundering and know your customer codes by collecting requisite personal information as per requirement from token holders. Although NSD has not yet selected the Blockchain environment which shall serve as the backbone for building the depository, designers at D3 are working round the clock to endow it with the optimum capacity of providing support to all cryptocurrency forms. Artem stated that the main targets of D3 shall be, “investors who do want to invest a big amount of money, but into crypto assets. We are talking about cryptocurrencies and tokens which are generated during ICOs.” He also added that, “they cannot do that now because big money normally requires a certain level of transparency. That’s the first barrier, which we can remove.”
Also Read: Russia to License Cryptocurrency Miners and Tax Mining Income
The depository’s developers are also trying to make the same compatible with ISO 20022 which is the messaging standard put to use by financial messaging service provider Swift along with a bevy of other entities engaged in high-value exchanges. NSD is also weighing out options for doubling up D3 as a platform for hosting annual general meetings wherein digital asset holders can cast their vote in matters concerning tokens issued by Blockchain-based organizations. The government body made an announcement of conducting a Blockchain system trial which enables such voting in 2016. The concept of D3 was brought under public eye in August 2017 but its name along with the fact that it’s designing phase has started off was revealed in Putin’s October press release.
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