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Use of blockchain to attract public funds for local projects suggested in Russia

Dmitry Yagodkin declared about the possibility of the use of blockchain technology to finance promising regional projects at the expense of the population.

According to the expert, the urgency of this matter is justified by the need for review of regional management approach to the implementation of infrastructure projects. So, he advises not to rely on subsidies from the federal budget, and to intensify the work with the population. As an example, he cites a regional bank “Smolensky,” in which the volume of deposits from the public was more than 11 billion rubles.

"Recently, in Smolensk, in the framework of public-private partnership a dialysis center appeared. The implementation of this project involved the investor and the administration of the region, and, of course, residents of the region are interested in its presence. Under certain conditions and guarantees of the state, 15-20 percent of the funds needed for this project could be obtained from the population – provided that they would be returned with a certain income after a certain period of time. That is a workable platform that provides population's investment of funds is about to appear. We need interest of the authorities to use it to attract public funds for the implementation of important projects for the region," Dmitry Yagodkin says.

To ensure the transparency of investment experts suggest using blockchain technology, as its use guarantees constant data on transactions. Dmitry Yagodkin also believes that the use of blockchain for investment of bank contributions in promising business projects will allow businesses to get rid of credits required, which in turn will reduce the payback period of projects and will lead to changes in taxation.


  • November 24, 2016 8:55 AM MSK