In a recent development, Russia may have created an alternative to the SWIFT payment system. The Rostec Group has developed blockchain technology for international payments.
The Rostec Group comprises several technology companies in Russia. They have been working on an international payment gateway since the SWIFT ban. This was due to the country’s evasion of Ukraine.
As a result, Russian banks were removed from the SWIFT payment system in February. This new system would allow the country to make payments for foreign trade.
Blockchain And Crypto Storage
According to Rostec, the new payment gateway will be based on CELLS’ blockchain platform. The Novosibirsk Institute Of Software System (NIPS), an affiliate with Rostec, developed the blockchain system.
The blockchain platform would make use of distributed ledger technology. The Russian company added that users could make payments in Russia’s national currency.
Therefore, the country could evade Western sanctions imposed since the Russia-Ukraine crisis. Additionally, with the CELLS program, users can create wallets to store cryptocurrencies.
Russia Says “New International Payment System Will Be Fast And Secure”
Furthermore, Rostec Group’s CEO, Oleg Yevtushenko, affirmed that the new payment gateway would be faster. Also, it would allow for secure transactions.
According to Yevtushenko, it can carry out over 100,000 transactions each second. Moreover, the CEO believes this figure will double soon.
Rostec also announced the payment feature would be in the country’s national currency. As a result, users can bypass the Western sanctions by using the SWIFT payment gateway.
The organization’s main targets are companies Russia has commercial ties with. Also, it will target financial institutions and foreign governments.
Russia Shifts Position On Crypto Usage
In January, Russia’s central bank appealed to ban the usage of cryptocurrencies. However, the government took a different approach to cryptocurrency usage.
Recently, the Russian government noted that it is thinking of adopting crypto for international payments. Ivan Chepskov, leader of the Financial Policy Department in Russia’s Ministry of Finance, confirmed the news.
Russia is looking for ways to integrate crypto for settlements of international trade. This is a complete change in the country’s perception of crypto before now.
According to its central bank, crypto is risky to Russia’s financial system. Also, it argues that crypto will affect the country’s monetary policy.
However, the legalization of crypto in Russia is still far from happening. Meanwhile, the government is trying to attract foreign investors and evade Western sanctions.