Russia Is Now Working On A Blockchain System To Replace Swift

Russia Is Now Working On A Blockchain System To Replace Swift

The Rostec Group is a government-owned organization that owns a number of technological enterprises in Russia. They’ve revealed that they’ve built a blockchain platform to create a digital system for international payments that might eventually replace the worldwide Swift system.

Due to sanctions implemented by Western countries in reaction to the Russian-Ukrainian conflict, Russian banks were kicked out of the SWIFT system in February. Since then, Moscow has been looking for a financial payment system to replace SWIFT in order to secure its international trade transactions.

Russia will be able to pay for imports in its own currency, the Ruble, rather than the dollar, thanks to the digital international payment system. The new system, according to the Rostec company, would also allow other nations to pay for their goods from Russia in their own currencies.

The CELLS blockchain platform, on which the worldwide payments system was built, was developed by the Novosibirsk Institute of Software Systems (NIPS), which is linked with the Rostec Group, according to a statement released by Rostec.

The platform is intended to create an integrated solution using distributed ledger technology.

The network features a digital method for making payments in the national currencies of the nations affiliated with it, according to the Russian group.

According to the company, its new technology “could provide a real alternative to the international payment services provided by the SWIFT system,” from which Russian banks have been cut off due to Western sanctions.

According to the announcement, the CELLS platform offers its users the ability to build wallets to hold digital currencies in addition to international payments.

The new international payment system, according to Oleg Yevtushenko, CEO of the Rostec Group, will assure high speed and safe transactions, with the new digital system capable of doing 100,000 transactions per second, with the capacity can double this number.

Yevtushenko also stated that the new system’s payment function in local national currencies will allow users to avoid Western sanctions against Russia.

The Rostec group is after significant corporations with economic links to Russia, as well as foreign government agencies that do business with Moscow, and financial institutions and banks.

The new mechanism was announced just a few days after the Russian government said that it was exploring using cryptocurrency in foreign payments. Last January, the National Central Bank suggested banning the establishment and usage of all cryptocurrencies.

The idea of employing cryptocurrencies in international trade settlements is being discussed inside the government, according to Ivan Chepskov, head of the Russian Finance Ministry’s Financial Policy Department.

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