Russian Blockchain Alternative to SWIFT to Prevent Disconnection of Nations, Banks

Russian Blockchain Alternative to SWIFT to Prevent Disconnection of Nations, Banks

A Russian university is ready to test its blockchain-based analogue to the global payment messaging network SWIFT, from which Russian banks were cut off as part of Western sanctions. The developers say their system would not allow the disconnecting of countries and banks. Russian Developers Create SWIFT Substitute Using Blockchain

Experts from the Competence Center of the National Technology Initiative at the St Petersburg State University in Russia announced they are preparing to trial a new interbank payment system, an alternative to SWIFT. The latter is now inaccessible for major Russian banks as a result of financial restrictions imposed over Moscow’s decision to invade Ukraine.

“The pilot version of the decentralized interbank financial messaging system is ready for testing and can be used in banks,” the university said in a statement. The people behind the project, specializing in the field of distributed ledgers, have employed blockchain technologies to create the platform.

The center’s technical director Alexander Kireev said that preliminary testing showed good results. The transfer speeds currently exceed 25,000 messages per second at one node and the network’s capacity can be increased in the future.

Quoted by the Russian crypto news outlet Bits.media, the university elaborated that the platform can scale up and integrate new financial organizations. Its representatives also emphasized that it would be impossible to disconnect any participating state or banking institution as each client would have the same rights and access as any other.

Using a distributed ledger to exchange cross-border financial messages allows for secure and reliable transactions, the developers team pointed out. Theirs is the second blockchain-based project to replace SWIFT in Russia after the state-owned tech giant Rostec announced in June a similar platform, designed to facilitate international settlements between Russia and its partners.

Russia also has its more traditional equivalent to SWIFT, the System for Transfer of Financial Messages (SPFS), which was launched amid similar tensions after the annexation of Crimea in 2014. According to the report, some 70 organizations from a dozen countries are already connected to the SPFS. Rostec’s CELLS platform is also intended to enable international payments and multicurrency transactions, as well as digital currency storage.

Amid its ongoing military intervention in Ukraine, the Russian Federation is increasingly cut off from the global financial system, including its foreign currency reserves. In response, Moscow has been trying to transition to payments in national currencies with its trade partners while also considering the possibility of using cryptocurrencies for international settlements. Tags in this story Bank, Banking, banks, Blockchain, blockchain technologies, Crypto, Cryptocurrencies, Cryptocurrency, DIstributed Ledger, international payments, international settlements, Messages, messaging system, network, Payments, platform, Russia, russian, SPFS, Swift, system, university

Do you expect Russia to implement a blockchain-based alternative to SWIFT? Tell us in the comments section below. Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Russia’s Finance Ministry Supports Circulation of Stablecoins in Country FINANCE | 5 days ago Financial Companies Report First Deal With Digital Assets Under Russian Law FINANCE | Jul 1, 2022

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleSolving the Complexities of Crypto Tax & Accounting With the Experts at Ledgible Next articleBitcoin, Ethereum Technical Analysis: ETH Remains Below $1,100 Despite Prices Rebounding on Wednesday Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year

The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing Iran to Increase Penalties for Unauthorized Cryptocurrency Mining Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin