Rostec, a Russian manufacturing and technology group, has developed a system that allows international settlements to be processed and digital currencies to be stored. The blockchain-based platform has been announced as an alternative to SWIFT, and some Russian banks cannot use the platform.
Rostec adopts distributed ledger technology to replace SWIFT
Russian state-owned Rostec has built a platform using blockchain technology to facilitate international settlements between Russia and its partners, as well as the storage of digital currencies. CELLS is designed to replace SWIFT, the global payment messaging system, from which many Russian banking institutions have been disconnected as part of Western sanctions.
As a result of the invasion of Ukraine, Russia is increasingly isolated from global finance, foreign exchange reserves and traditional payment channels. The Moscow government has been trying to transition to payments in national currencies such as the ruble and yuan in its trade deals, and is also considering the possibility of using cryptocurrencies for international settlements. That’s because Russia’s largest companies and importers face difficulties paying in dollars.
Rostec executive director Oleg Yevtushenko said, “A digital payment system based on a blockchain platform can completely replace SWIFT, providing high-speed, secure and irrevocable transactions.” RBC Crypto quoted him as saying that CELLS will make it possible to convert to national currency settlements , eliminate the risk of sanctions and ensure the independence of the Russian state financial policy with regard to clearing.
CELLS is a product of the Novosibirsk Institute of Program Systems (NIPS). The report details that its designers want to create a complete ecosystem of distributed ledger technology (DLT)-based software products and services to enable international payments, multi-currency transactions, user identification and digital currency storage.
The system is expected to handle up to 100,000 transactions per second, with the option to increase its capacity in the future. The creator promises to implement solutions such as data storage system, web application creation platform, “digital passport” service, “digital housing and public service” system based on CELLS.
Do you think Russia can successfully replace SWIFT with CELLS in its international trade relations? Share your thoughts on the topic in the comments section below.
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