The Pension Fund of the Russian Federation (PFRF) is working on a deal with Russian Railways to use blockchain to keep track of transport riders eligible for fare discounts.

PFRF is the principal pension fund in Russia, while Russian Railways is fully a state-owned operator of freight and passenger train services. The joint deal is meant to promote transparency and prevent fraud for those who use discounted transport services.

Cointelegraph noted Russian media as reporting (Mar 1) PFRF chair Anton Drozdov saying it expects to close the deal with Russian Railways “sometime in 2019”. A pilot is also expected to be conducted along the Moscow-Tver railway line.

Separately on the possible use of blockchain in certain parts of its pension system, Drozdov said to the effect that PFRF could not be involved in using blockchain as such at the current stage. This is because PFRF must first await Russia’s central bank to develop a legislative base for the project as the project will need a central administrator.

Russia has been increasingly adopting crypto-related projects. The Moscow City Council recently proposed a new bill for applying blockchain to electronic voting in elections as a way to uphold the integrity of voting.

President Vladimir Putin has also recently issued (Feb 27) a directive for the Russian government to adopt crypto-related regulations during spring this year, and enforce them by July 2019.