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Tuesday, March 28, 2023

Russia’s Industrial Giant Rostec Announces Blockchain-Based Alternative to SWIFT

Russia’s Industrial Giant Rostec Announces Blockchain-Based Alternative to SWIFT – Rostec, a Russian state-owned firm, has developed a blockchain-based technology to simplify international settlements and the storage of digital currency between Russia and its partners.

CELLS is meant to be a replacement for SWIFT, the global payment messaging system from which a number of Russian banking institutions have been cut off as a result of Western sanctions.

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As a result of its invasion of Ukraine, Russia has become disconnected from global finance, foreign currency reserves, as well as traditional payment systems.

In its trade deals, the Russian government has been attempting to switch to payments in national currencies such as the ruble and the yuan, and is also contemplating the use of cryptocurrencies for international settlements.

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“A digital payment system based on a blockchain platform can be utilized as a full-fledged replacement of SWIFT, delivering high-speed, secure, and irrevocable transactions,” says Rostec Executive Director Oleg Yevtushenko.

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According to RBC Crypto, CELLS will enable the transfer to national currency settlements, minimize the possibility of sanctions, and ensure the independence of Russia’s national financial policy in terms of clearing.

The Novosibirsk Institute of Program Systems developed CELLS. According to the paper, its creators aimed to develop a complete ecosystem of software products and services centered on distributed ledger technology (DLT) that allows for international payments, multicurrency transactions, user identification, as well as digital currency storage.

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The system will be able to handle up to 100,000 transactions per second, with the capacity to grow in the future. The creators promise to construct a data storage system, a platform for developing web applications, a “digital passport” service, a “digital housing and community services” system, and other solutions based on CELLS.

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