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6 October 2017

The Central Bank of Russia proposes to create a national system for the registration of financial transactions – Shvetsov

Sochi. 6th of October. Interfax - The Central Bank of Russia proposes to create a national system for registering financial transactions, said First Deputy Chairman of the Bank of Russia Sergey Shvetsov at the forum Finopolis-2017 in Sochi.

"We propose to create a national system for registering financial transactions. This is an important element that should certainly be supplemented by the remote identification system, government services and the Federal Tax Service. This is a system that, undoubtedly, will interact with payment systems. The main essence of this initiative lies in the fact that all transactions in the financial market, which are purchased by our population, are reflected in one repository” S.Shvetsov said.

He explained that unlike the current repositories that take into over-the-counter repo transactions and derivatives transactions, uniform repository will contain record about the acquisition of a service by a consumer. This entry, according to the first deputy chairman, will be legally sufficient for defending interests by the consumer and the counterparty in court, with the ombudsman and for applying to the Central Bank.

"The platform should accept players with a low level of entrance ticket, in order to make the market competitive," S.Shvetsov said. He explained that the creation of a central system of transaction registration will also allow bringing the consumer to a unified position of all his relations with the financial market. "That is, the consumer will see everything and in one place, from here will be relations with the tax inspection, from here will be relations with other participants of this infrastructure," S.Shvetsov said.

According to assessment of the Central Bank, the new environment should generate consumer confidence, because the consumer knows that by purchasing the product remotely, he can go to his personal cabinet and make sure that the product or service is received.

"The next point is how financial products will be" packaged "in this system. Most likely, these will be smart contracts," S.Shvetsov said.

He noted that each financial product is not static: interest is accrued on it, if it is a floating rate, the indicators, to which reference is made, are calculated. If this is an insurance product for investment life insurance, then the regular payments that the consumer makes are tracked. If the deposit is replenished, "then it also lives its own life, so a smart contract here is quite acceptable."

"It is important that this system should have an open interface, it should allow producers to come and sell their products, it should also allow consumers to connect directly to this system," the first deputy chairman of the Central Bank said.

He also noted that there are two new elements that are not present today in the financial market. "These are supermarkets that represent the seller, namely: they prepare marketing programs for the consumer, a comprehensive offer, and they act as agents of sellers. And bots that already act on the side of consumers as brokers," S.Shvetsov said.

According to the assessment of the Central Bank, the new platform should be one, but the remaining elements should be either high or low competitive.

S.Shvetsov noted that "the producers of financial products, payment systems, suppliers of bots, depository services, information providers in the field of kwc (know your client) and supermarkets can become highly competitive”.