Russia Develops Blockchain System to Replace SWIFT

The Rostec Group is an organization of technology firms under the ruling of the Russian government. The group reportedly revealed that they are set to launch their newly invented digital payment platform which would replace SWIFT.

Russia Sets To Replace SWIFT

SWIFT is a global digital payment system used for international payments. However, due to the ongoing Russian-Ukrainian war, Russian banks were banned from using SWIFT.

Ever since, Moscow had been exploring all possible ways to find an alternative system to secure its international transactions. The created alternative was said to transact in the Ruble rather than Dollar.  Furthermore, Rostec said importers can pay with their native fiat currencies using the new system.

According to Rostec, the system is built on a blockchain network known as CELLs. The platform’s structure was designed to offer a digital payment system integrated with decentralized blockchain technology.

Additionally, the system reportedly has a core component that allows users to issue payments in their various fiat currencies. Also, users can create personal wallets to store their digital assets.

Rostec said that the new international payment system is as efficient and functional as the  SWIFT system. Therefore, it would make an excellent replacement for SWIFT which Russian banks can use for their international transactions.

Russia Promised A Secure Faster System

In a speech, Rostec CEO, Oleg Yevtushenko, said that people would enjoy faster and more secure transactions with the new system. He added that the new system is also capable of executing about 100k transactions and more per secs.

The CEO furthered that the system would help Russia to bypass the embargo placed on it by Western Union. This is because the platform allows individual countries to use their native currencies to execute transactions on it.

Reportedly, the Rostec Group’s eyes are fixed on large firms, foreign government agencies, and financial institutes that are in a business partnership with Russia. 

Russia Seems To Be cryptocurrency-inclined

The new system was revealed a few days after Russian regulators started discussing the adoption of crypto as international payment. Nonetheless, the Russian Central Bank called for the banning of all crypto-related activities in the country.

Currently, Russian regulators are reportedly still deliberating on the adoption of digital assets as a means of international payment method.

This depicts that Russian regulators are most likely in favor of cryptos’ adoption as their position seemed crypto-inclined. 

However, the country’s central bank continues its frantic effort to have crypto banned. It claimed that digital assets can expose the country’s financial economy to unnecessary risks. Additionally, it said that the crypto industry sabotages the sovereignty of the monetary policy of the country.

But regardless of the central bank’s stand, the status of crypto in Russia keeps improving and increasing. However, the regulators had made efforts earlier to legalize the industry but to no avail. 

Nonetheless, they are bent on using it to entice foreign investment and also improve their domestic trades from their current state.

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