A New Dawn for E-Proxy Voting

The National Settlement Depository (NSD) of Russia is stepping boldly into the 21st century with its successful test of an e-proxy voting system utilizing blockchain technology. Eight years after the arrival of Nakamoto’s Bitcoin, which set the blockchain world ablaze, Russia is now exploring its real-world applications. Although the financial industry is scrambling to adapt, real-world use cases in Russia still feel a bit like unicorns – hard to find but fervently hoped for.

The Blockchain Buzz in Russia

Just recently, the Moscow Forum “Blockchain and open platforms – 2016” attracted over 30 industry speakers and more than 320 attendees, including notable figures from major tech and financial institutions. Olga Skorobogatova, Vice Governor of the Bank of Russia, highlighted the potential blockchain holds for reshaping the financial sector, much to the excitement of eager investors who might have read too many sci-fi novels.

Real-World Applications Taking Shape

Among the highlights of the forum was the announcement from Sberbank, Russia’s major bank, about its pilot project leveraging Ethereum’s blockchain for issuing and managing power of attorney documents. As Sberbank’s Chief Executive remarked, “We’ll know whether we’re onto something in a year.” Many in the audience chuckled, not knowing whether it was a pitch or a punchline.

Decoding E-Proxy Voting

So, what exactly is this e-proxy voting that’s got everyone talking? Essentially, it’s a tech-savvy approach to facilitate electronic communication between securities holders and issuers for various corporate actions, first rolled out by NSD back in August 2014. They’ve worked on improving it since, exploring compliance with international standards that confuse more than just a few legal interns.

Testing the Waters

Fast forward to now, and NSD’s newly tested e-proxy voting system harnesses the power of distributed ledger technology. It allows shareholders to vote using their digital signature, all encapsulated within blockchain’s secure environment. It’s a bit like watching a magic show, half in awe and half wondering how the trick works.

Benefits and Future Implications

The promise of this technology is profound—e-proxy voting aims to capture the voices of minority shareholders who previously sat silent due to the burdensome costs of participation. According to Maria Dolgopolov of NSD, this could finally bring those long-distance shareholders into the mix.

What Lies Ahead?

With a launch slated for 2017, it’s only a matter of time before e-voting integrates itself into the broader financial landscape. However, as Artyom Duvanov of NSD pointed out, while they’ve got a working prototype, real-world application hinges on legislative changes. If they get it right, Russian e-proxy voting could be the trend that inspires a global makeover for corporate governance.