- CELLS a blockchain-based system will be replacing SWIFT
- The new blockchain system will allow payments through national currencies
- The new system comes with high transaction speed and security
Rostec, a state-owned agency located in Moscow, has reported that it has launched a blockchain platform. The platform will be used to facilitate international payment in Russia.
CELL, the new blockchain platform, will replace SWIFT. Russia initially used SWIFT for global payments before its banks were blocked as out as SWIFT members.
Through the new digital system, Russia will be able to use its national currency to settle payments on imports. Meaning Russia will no longer be using the Dollar. Foreign countries can also pay using their national currency on imports from Russia.
Secure and fast transactions
The Russian banks were blocked from SWIFT in an attempt to discourage the Kremlin’s invasion of Ukraine. Since then Moscow has been putting in efforts to look for an alternative method of financial payments.
Russia’s blocking was likely to lead to an economical downtown as the country relied on SWIFT for the exportation of its oil and gas.
The new platform created by the Novosibirsk Institute software system (NIPS), can perform around 100,000 transactions each second. It also has the potential to increase its throughput and also offers maximum security.
Oleg Yevtushenko, Executive Director at Rostec, stated that CELLS Will enable Russia to overcome its international sanctions. He noted that the new system will help ensure the “independence of the national financial policy for clearing participants.”
The CELLS platform also offers an opportunity for the users to own their wallets that will be used to keep digital currencies.
The Rostec group claimed it is aiming to establish commercial relations with foreign government authorities that are involved in businesses with Moscow. The banks and financial institutions are also targeted.
Russia changes its stand on cryptocurrency
In January 2022 the Central Bank announced the banning of all cryptocurrency trading, mining, and ownership. The ban imposed a one-billion rubles fine on anyone who went against the ban.
Later on a bill, On Digital Currencies, was later introduced in February. The bill aimed at amending any draft in quests to ban crypto payments.
The head of the Financial Policy Department of the Finance Ministry in Russia, Ivan Chepskov noted there were dialogues gearing for the adoption of cryptocurrencies as a tool for global trade payments.
In May 2022, the Ministry of Industry and Trade in Russia remarked on how the Russian Federation was working on legalizing crypto. The Central Bank of Russia’s president, Elvira Nabiullina, affirmed the rolling out of the Central Bank’s digital currency next year.
