The Russian Rostec Group is a government organization that includes numerous technology companies. This group announced that it has developed a blockchain platform to launch a digital system for international payments that can replace the Swift system.
Russian banks were banned from the SWIFT system last February following sanctions imposed by Western countries in response to the Russo-Ukrainian war. Since then, Moscow has struggled to find an alternative financial payment system to SWIFT in order to protect its foreign business transactions.
The digital international payments system will allow Russia to pay for its imports in its national currency, the ruble, instead of the dollar. According to the Rostec group, the new system will also allow foreign countries to pay for their imports from Russia in their national currency as well.
Blockchain and cryptocurrency storage
According to Rostec’s statement, the blockchain platform on which the international payments system was developed, called CELLS, was developed by the Novosibirsk Institute of Software Systems (NIPS), itself affiliated with the Rostec Group. .
The platform is designed to be able to provide an integrated system based on blockchain technology. According to the Russian group, the platform includes among its central elements a digital system that allows payments to be made in the national currencies of the countries associated with it.
The company says its new system “it could be a real alternative to the international payment services provided by the SWIFT system“, From which Russian banks have been isolated due to Western sanctions.
Along with the international payments service, the CELLS platform offers its users the ability to create wallets to store digital currencies, according to the statement.
Russia is committed to guaranteeing transactions
The CEO of the Rostec group Oleg Yevtushenko promised that the new international payment system would guarantee “high-speed and secure transactions“, Specifying that the new digital system can carry out approximately 100,000 transactions per second, with the possibility of doubling this figure.
Yevtushenko also explained that the payment function in local national currencies offered by the new system will allow users to circumvent Western sanctions imposed on Russia.
The Rostec group is aimed at large companies that do business with Russia, as well as foreign government authorities that do business with Moscow, as well as financial institutions and banks.
Russia: The position on cryptocurrencies has evolved
The announcement of this new system comes just days after the Russian government said it was considering adopting cryptocurrencies in international payments. The Central Bank of Russia proposed last January to ban the introduction and use of all cryptocurrencies.
There are discussions within the Russian government about the idea of using cryptocurrencies in international trade regulations, said Ivan Chepskov, head of the financial policy department of the Russian Finance Ministry.
This is seen as a shift in Russia’s stance on cryptocurrencies, as the Russian Central Bank warned of risks to the country’s financial system earlier this year. It has been claimed that cryptocurrencies undermine the sovereignty of the country’s monetary policy.
Conversely, the legal status of cryptocurrencies in Russia remains dormant and previous efforts to legalize them have failed. The government is pushing to allow them in order to attract foreign investment and bring domestic trade out of the shadow of Western sanctions.
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