Russia Is Developing a Blockchain System to Replace Swift
The Rostec Group is a company owned by the Russian government. It has a number of tech companies in Russia. They’ve said that they’ve built a blockchain platform to make a digital system for international payments that could eventually replace the worldwide Swift system.
Blockchain and cryptocurrencies need to be kept safe.Rostec said in a statement that the CELLS blockchain platform, on which the global payments system was built, was made by the Novosibirsk Institute of Software Systems (NIPS), which is part of the Rostec Group.
Using distributed ledger technology, the platform is meant to make an integrated solution.
The Russian group says that the network has a digital way to pay in the national currencies of the countries that are part of it.
The company says that its new technology “may offer a real alternative to the international payment services provided by the SWIFT system,” which Russian banks can’t use because of sanctions from the West.
The announcement says that the CELLS platform lets its customers build wallets to store digital currencies and make international payments.
Russia makes sure that transactions are safe.
CEO of the Rostec Group Oleg Yevtushenko said that the new international payment system would offer “high speed and safe transactions.” The new digital system would be able to handle 100,000 transactions per second, and this number could be doubled if needed.
Yevtushenko also said that customers would be able to avoid Western sanctions against Russia if they could pay for things with their own national currencies in the new system.
The Rostec group is looking for big companies with business ties to Russia, as well as foreign government agencies that do business with Moscow and financial institutions and banks.
Russia has changed the way it feels regarding cryptocurrencies
The new system was announced just a few days after the Russian government said it was looking into ways to pay for things abroad with cryptocurrency. In January, the Russian Central Bank said that all cryptocurrencies should not be created or used.
Ivan Chepskov, head of the Financial Policy Department at the Russian Finance Ministry, says that the idea of using cryptocurrencies in international trade settlements is being talked about inside the Russian government.
Earlier this year, the Russian Central Bank had warned about the risks to the country’s financial system. This is seen as a change in Russia’s attitude toward cryptocurrencies. People say that cryptocurrency threatens a country’s ability to set its own monetary policy.
In Russia, on the other hand, the law is still changing about cryptocurrencies, and previous attempts to make them legal have failed. The government wants them to be legalized so that they can bring in foreign investment and take the shadow of Western sanctions off of domestic business.
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