Rostec is a Russian tech and manufacturing company that has designed a system to allow international settlements to take place and store digital currencies. As an alternative to SWIFT (which is not available for certain Russian banks), the blockchain-based platform was announced.
Rostec Uses Distributed Ledger Technology To Substitute SWIFT
Rostec, a Russian state-owned company has created a blockchain platform to allow international settlements between Russia’s partners. It also allows for the storage and transfer of digital currencies. CELLS will be an alternative to SWIFT (global payment messaging system), from which many Russian banks have been removed as part of Western sanctions.
Russia’s invasion of Ukraine has resulted in a decrease in access to global finance, foreign currencies reserves and traditional payment channels. Moscow’s government has tried to make payments in Russian national currencies, such as the ruble or the yuan, in trade agreements. It is now considering using cryptocurrency for international settlements. This, as Russia’s largest companies and importers are facing difficulties in their U.S. dollar payments.
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.” Quoted by RBC Crypto, he added that CELLS will make it possible 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 was developed by the Novosibirsk Institute of Program Systems. They wanted to develop a comprehensive ecosystem of software products that would enable international payments, multicurrency transactions and digital currency storage.
This system is expected to handle up to 100,000 transactions per minute with an option to expand its capabilities 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.
What do you think Russia’s chances of successfully substituting SWIFT for CELLS? Please share your views on this topic in the comment section.
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