Russian Industrial Giant Rostec Announces Blockchain-Based Alternative to SWIFT – Bitcoin News


Rostec, the Russian manufacturing and technology conglomerate, has developed a system that enables international settlement processing and digital currency storage. The blockchain-based platform has been advertised as an alternative to SWIFT, which is not available to some Russian banks.

Rostec uses distributed ledger technology to replace SWIFT

The Russian state corporation Rostec has built a platform using blockchain technologies to facilitate international agreements between Russia and its partners and the storage of digital currency. CELLS is intended as an alternative to the global payment messaging system SWIFT, from which several Russian banking institutions have been cut off as part of Western sanctions.

Russia has been increasingly cut off from global finance, foreign exchange reserves and traditional payment channels as a result of its invasion of Ukraine. The Moscow government has been trying to transition to payments in national currencies like the ruble and the yuan in its trade deals, and is also considering using cryptocurrencies for international deals. This, since the largest companies and importers in Russia face difficulties in their payments in US dollars.

According to Rostec CEO Oleg Yevtushenko, “a digital payment system based on a blockchain platform can be used as a full replacement for SWIFT, providing high-speed, irrevocable and secure transactions.” Quoted by RBC Crypto, he added that CELLS will allow to switch to settlements in national currencies, eliminate the risk of sanctions and ensure the independence of Russia’s national financial policy when it comes to clearing.

CELLS is a product of the Novosibirsk Institute of Program Systems (NIPS). Its designers wanted to create a complete ecosystem of distributed ledger technology (DLT)-based software products and services that enable international payments, multi-currency transactions, user identification and digital currency storage, the report details.

The system is expected to process up to 100,000 transactions per second with the option to increase its capacity in the future. Based on CELLS, a data storage system, a platform for creating web applications, a “digital passport” service, a “digital housing and communal services” system, and other solutions will be implemented, the creators promise.

Tags in this story
Banking, banks, Blockchain, blockchain technology, CELLS, Crypto, Cryptocurrencies, Cryptocurrency, Digital Currency, Distributed Ledger, DLT, foreign trade, international payments, international agreements, messaging system, national currencies, Payments, platform, Rostec, Russia, Russian , Sanctions, Settlements, Swift, system, trade, Ukraine, War

Do you think that Russia will be able to successfully replace SWIFT with CELLS in its international trade relations? Share your thoughts on the matter in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who likes Hitchens’s quote: “Being a writer is who I am, rather than what I do.” In addition to crypto, blockchain, and fintech, international politics and economics are two other sources of inspiration.

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