The Russian group Rostek is a government organization that includes a number of technology companies. This group has announced that it has developed a blockchain platform to launch a digital system for international payments that can replace the Swift system.
Russian banks were banned from the SWIFT system last February following sanctions imposed by Western countries in response to the Russo-Ukrainian war. Since then, Moscow has been struggling to find an alternative financial payment system to SWIFT to protect its foreign trade transactions.
The digital system of international payment transactions enables the Russia to pay for its imports in its national currency, the ruble, instead of dollars. According to the Rostec Group, the new system will also allow foreign countries to pay for their imports from Russia in their national currency as well.
Blockchain and cryptocurrency storage
According to Rostec’s statement, the blockchain platform on which the international payment system called CELLS was developed was developed by the Novosibirsk Institute of Software Systems (NIPS), which itself is affiliated with the Rostec Group.
The platform is designed to provide an integrated system based on blockchain technology. According to the Russian group, the platform is among its elements exchanges a digital system that allows payments in currencies of the associated countries.
The company says its new system “could represent a real alternative to the international payment services of the SWIFT system“, from which Russian banks have been isolated due to Western sanctions.
In addition to the international payment service, the CELLS platform offers its users the opportunity to create wallets for storing digital currencies, according to the statement.
Russia pledges to secure transactions
Oleg Yevtushenko, CEO of Rostec Group, promised that the new international payment system “fast and secure transactions“, stating that the new digital system will be able to carry out approximately 100,000 transactions per second, with the possibility of doubling this figure.
Yevtushenko also stated that the function of Payment in local national currencies offered by the new system will allow users to bypass Western sanctions imposed on Russia.
Rostec Group caters to large corporations doing business with Russia, foreign government agencies doing business with Moscow, financial institutions and banks.
Russia: The position on cryptocurrencies has evolved
The announcement of this new system comes a few days after the government Russe said he was considering Introduce cryptocurrencies in international payments. The Central Bank of Russia proposed last January to ban the adoption and use of all cryptocurrencies.
There are talks within the government Russian on the idea of using cryptocurrencies in international trade regulationssaid Ivan Chepskov, head of the Department of Fiscal Policy at the Ministry of Finance of Russia.
This is seen as a change in Russia’s attitude towards cryptocurrencies, as the Central Bank of Russia warned of risks to the country’s financial system earlier this year. It has been claimed that cryptocurrencies are undermining the country’s monetary sovereignty.
On the other hand, the legal status of Cryptocurrencies in Russia are pending and previous efforts to legalize them brought no results. The government is pushing to allow them to attract foreign investment and bring domestic trade out of the shadow of Western sanctions.
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