Russia’s replacement of the financial sector service with the Society for World Interbank Financial Telecommunications (SWIFT) may finally have come after months of discussions on its development.
The blockchain to replace SWIFT
The Russian Rostec Group is a government organization that includes numerous technology companies. They announced that they have developed a blockchain platform to launch a digital system for international payments that can replace the global Swift system.
In its press release, the company pointed out that the CELLS blockchain was developed by one of its 700 subsidiaries, named Novosibirsk Institute Software Systems (NIPS). The platform is multifunctional and can handle up to 100,000 transactions per second, with the ability to further increase throughput. Along with the international payments service, the CELLS platform offers its users the ability to create wallets to store digital currencies, according to the release.
Russia was excluded from the SWIFT system after the conflict with Ukraine, this is one of the strongest sanctions proposed by the United States. Cryptocurrencies and the blockchain are at the heart of this great conflict, with a massive use of cryptocurrencies as a means of donation for the Ukrainian military.
The Russian organization believes that the creation of a “cross-border sandbox” is a promising initiative. The project aims to create opportunities for fintech companies to process payments using digital financial tools on behalf of Russian exporters and importers.
Russia had already been talking for a few weeks about using cryptocurrencies as a means of payment.
Cryptocurrency settlements represent an alternative payment system, which will now grow incredibly fast, according to REC director Veronika Nikishina. Speaking at the St. Petersburg International Economic Forum, you said:
“As a development institution that captures all current trends, we are now looking to become a sandbox to drive the use of cryptocurrencies in cross-border payments.”
The Director of the CER stressed the importance of building a Sandbox “in order to identify all possible risks in terms of regulations and technology. Veronika Nikishina believes that this would enable such payments to be made quickly and securely in the future.
A two-tier system in Russia
Most Russian institutions agree that the ruble should remain the only legal tender within the country as the authorities prepare to enact comprehensive regulations on cryptocurrencies. Furthermore, the Central Bank of Russia has stated that international payments in cryptocurrency are possible.
Earlier this week, members of the State Duma, the lower house of parliament, passed a bill banning the use of cryptocurrencies as a means of payment, but left the door open to exceptions considered in other laws. federal.
Russia is therefore developing a truly unique approach, mainly due to heavy financial sanctions on its economy, according to which cryptocurrencies would be banned from use in the country while still being the preferred means of continuing to sell and export their assets overseas.
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Passionate about geopolitics, economics, cryptocurrency, Eurasia and travel! (as far east as possible), crypto-trader for 4 years.