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June 20, 2022

Russia is developing a blockchain system

Russia technology companies are held by the Rostec Group, a government-owned corporation. Using a blockchain platform, they’ve developed a digital payment system that might someday replace the global Swift system.

Earlier this year, Russian banks were banned from the SWIFT network as a result of sanctions imposed by Western nations in response to tensions between Russia and Ukraine. So, in order to safeguard its international commercial activities, Moscow has been searching for a replacement for SWIFT.

Because of the digital international payment system, Russia will be able to pay for imports using the Ruble instead of the dollar. Other countries will also be able to pay for Russian products in their own currencies, Rostec claims.

According to a statement from Rostec, the Novosibirsk Institute of Software Systems (NIPS) created the CELLS blockchain technology on which the international payment system was established.

Using distributed ledger technology, the platform aims to build an integrated solution. In accordance with the Russian group, the network has a digital payment system that allows payments to be made in the national currencies of the countries that are members.

A viable alternative to the SWIFT system, which Russian banks have been cut off from because of Western sanctions, might be supplied by the business’s new technology, according to the company.

Wallets for digital currencies and international payments are among the features of the CELLS platform, according to the statement.

International payments would be faster and safer under the new system, according to Rostec CEO Oleg Yevtushenko. The new digital system can handle 100,000 transactions per second and has the potential to quadruple that number.

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To escape Western sanctions on Russia, Yevtushenko claims that the new system’s ability to accept payments in local currencies would enable users to utilize the system.

Foreign government agencies doing business with Moscow, as well as financial organizations, are all targets of the Rostec group’s investigation.

Only a few days before, the Russian government revealed that it was looking into the possibility of utilizing cryptocurrencies for international payments. All cryptocurrencies should be banned from being created and used, according to the National Central Bank.

According to Ivan Chepskov, director of the Russian Finance Ministry’s Financial Policy Department, the notion of using cryptocurrency in international trade settlements is being studied inside the government.