Russian State-owned Firm ‘Rostec’ Creates Blockchain-based SWIFT Alternative

Russian State-owned Firm 'Rostec' Creates Blockchain-based SWIFT Alternative
  • The Novosibirsk Institute of Program Systems created CELLS.
  • As a starting point, the system will be able to handle up to 100,000 transactions per second.

Rostec, a Russian state-owned company, has developed a blockchain-based platform to let Russia and its partners conduct international settlements and store digital money. In the wake of Western sanctions, several Russian financial institutions have been cut off from SWIFT’s global payment messaging system, and the proposed solution seems to be CELLS.

The Novosibirsk Institute of Program Systems created CELLS. DLT-based software goods and services, including international payments, multi-currency transactions, user identity, and storage of digital money, were the goal of the project’s creators, according to a report.

Full-fledged Replacement of SWIFT

Russian financial resources, such as its foreign currency reserves and regular payment routes, have all been severely damaged due to the country’s invasion of Ukraine. Russia’s government has been seeking to use national currencies like the ruble and the yuan in its trade dealings and is also exploring adopting cryptocurrencies for international settlements. Russian enterprises and importers are experiencing difficulty making payments in US dollars, which is why this is happening now.

According to Rostec Executive Director Oleg Yevtushenko:

“a digital payment system based on a blockchain platform can be used as a full-fledged replacement of SWIFT, providing high speed, secure and irrevocable transactions.”

CELLS, he said, would allow for settlements to be made in national currencies, eliminating the possibility of sanctions and ensuring that Russia’s national financial policy is independent when it comes to clearing.

As a starting point, the system will be able to handle up to 100,000 transactions per second. According to the designers, CELLS will be used to construct a data storage system, a platform for generating web applications, a “digital passport” service, a “digital housing and communal services” system, and other solutions.

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