Russia Creates SWIFT Payment Alternative Integrating Blockchain Technology

Russian President Proposes New Digital Payment System
  • Various technological companies have formed a cult called the Rostec Group.
  • Russia will be able to undertake international transactions and pay for goods in Rubles.

Russia’s government agency has created its own international payment blockchain network to replace the Swift system. Various technological companies have formed a cult called the Rostec Group. Earlier this week, they announced the worldwide digital payment system they’ve been working on.

International Commerce Expected to Bounce Back

As a result of the conflict between Russia and Ukraine and the subsequent sanctions, Russian banks could not use Swift payments as of February. Moscow has been searching for an alternative payment system to SWIFT to protect its international commerce. Russia will be able to undertake international transactions and pay for goods in ruble thanks to the new payment system. Additionally, other nations will be allowed to pay in their own currencies for their Russian import and export deals.

According to a statement from Rostec, the Novosibirsk Institute of Software Systems (NIPS), affiliated with the Rostec Group, developed the CELLS blockchain technology upon which the worldwide payments system was established. Distributed ledger technology has been used in the platform’s architecture and development.

For nations that use the platform, it provides tools that allow them to pay using their native currencies. The Rostec group also emphasized that the platform may be used as a substitute for the Swift system, which has been confined to Russian banks because of sanctions. According to the statement, wallets for digital currencies and foreign payments are now available on the CELLS platform.

Russian lawmakers have submitted a bill that would ban cryptocurrency as a payment mechanism, causing uncertainty regarding the country’s stance on the issue. In recent months, Russian authorities and lawmakers have made a concerted effort to embrace and institutionalize cryptocurrencies, as investors have observed fully.

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