Russia Develops Blockchain Replacement for Swift
The Rostec Group is a government entity comprised of many technological enterprises. They have declared that they have constructed a blockchain platform for the introduction of a digital international payment system that is capable of replacing the worldwide Swift system.
As a result of sanctions implemented by Western nations in reaction to the Russian-Ukrainian conflict, Russian banks were barred from the SWIFT system in February of 2014. Since then, Moscow has been attempting to find an alternative to SWIFT in order to safeguard its international commercial dealings.
The digital system of international payments will let Russia pay for its imports in Rubles rather than dollars. According to the Rostec company, the new system would also let other nations pay in their native currencies for goods from Russia.
Blockchain storage and cryptocurrencies
CELLS, the blockchain platform on which the international payments system was built, was created by the Novosibirsk Institute of Software Systems (NIPS), which is connected with the Rostec Group, according to a statement from Rostec.
The platform is intended to create an integrated solution using distributed ledger technology. According to the Russian organisation, the platform’s primary components include a digital mechanism for making payments in the national currencies of its affiliated nations.
The business believes that its new system “may offer a viable alternative to the international payment benefits rendered by the SWIFT system,” from which Western sanctions have excluded Russian institutions.
According to the announcement, in addition to the international payments service, the CELLS platform enables its customers to construct wallets for storing digital currencies.