bne IntelliNews – Russian Rostec is developing a blockchain system as a “real alternative” to SWIFT
Rostec, a state-owned company that includes more than 700 defense and technology companies, announcement in June, it developed a blockchain platform to provide a “real alternative to SWIFT in international settlements”, reports East-West Digital News.
Russian banks were barred from the SWIFT system in February as part of sanctions imposed by Western countries in response to Russia’s invasion of Ukraine. Since then, Moscow has been trying to find alternative settlement systems to conduct its foreign trade transactions. The use of cryptocurrencies has been considered, but it poses challenges.
Rostec’s blockchain platform, dubbed “CELLS”, was developed by the Novosibirsk Institute of Software Systems (NIPS), a subsidiary of Rostec.
“CELLS was designed to create an ecosystem of software products and services, including a digital system for making payments in national currencies. This multi-functional system enables international payments, multi-currency transactions, user identification and digital currency storage. Blockchain technology, combined with certified methods of cryptographic protection of information, provides a high level of reliability,” says Rostec.
“This blockchain-based digital payment system can be used as a full-fledged replacement for SWIFT. It offers high speed, security and irrevocability of transactions. The system will make it possible to switch to settlements in national currencies, eliminate the risk of sanctions and ensure the independence of national financial policy for clearing participants,” said Rostec Executive Director Oleg Yevtushenko.
The platform provides up to 100,000 transactions per second, as well as storage and transmission of large media files in a secure format in accordance with Russian legal requirements, Rostec explains.
Rostec believes that independent software developers, system integrators, large enterprises, as well as authorities, financial institutions and banks could use the system.
A data storage system, a blockchain platform to create web applications protected against hacking and DDOS attacks, a digital passport service, a digital housing and communal services system and other solutions are also in the works. of development, Rostec said.
This article first appeared in East-West Digital News (EWDN), a partner publication of bne IntelliNews.