Rostec Group of Russia is a government institution that takes into account several technology firms. They have declared to have constructed a blockchain venue to introduce a digital system encompassing international payments to substitute the worldwide SWIFT system.
Russian banks were eliminated from the SWIFT system in recent February because of the sanctions enforced on the behalf of the Western nations while responding to the war started by Russia against Ukraine. After that up till now, several efforts have been made by Moscow to have a substitutive system of financial payments replacing SWIFT to shield the country’s foreign trade transfers.
The international payments’ digital system will permit Russia to recompense for the imports in the native currency thereof (the Ruble) rather than the dollar. As the Rostec group puts it, the latest system will additionally permit the foreign nations to recompense in their native currencies in return for imports to be received by them from Russia.
Crypto and Blockchain Storage
The statement of Rostec mentioned that the blockchain venue on which the development of the payments system was made, named CELLS, was constructed on the behalf of the Novosibirsk Institute of Software Systems (NIPS), and it has an affiliation with Rostec Group. The venue is organized in such a way that it offers a distributed ledger technology-based integrated system. As per the Russian group, one of the prominent features of the venue is a digital system to enable payments in the native currencies of the nations engaged with it.
The firm emphasizes that the latest system thereof could deliver a strong substitute to the international payment options that the SWIFT system provides and the banks in Russia have been deprived of it because of the Western sanctions). Apart from the service of international payments, the consumers of CELLS venue are provided the capability to construct wallets that would store digital currencies, as disclosed in a statement.
Russia Initiates Secure Transactions
The Rostec Group’s CEO, Oleg Yevtushenko, assured that the unique system of international payments will guarantee enormous speed along with secure transfers, stating that up to 100,000 transfers can be performed by the latest digital system in a second, with the probability that this figure could also be doubled.
Moving on, Yevtushenko elaborated that the payment option in local native currencies provided by the latest system will facilitate the customers to evade the Western sanctions enforced on Russia. The Rostec group has a focus on big firms having commercial connections with Russia, and foreign government officials that have business ties with Moscow, along with banks and financial organizations.
Russia Shifts Its Role in Crypto
The new system’s declaration is witnessed some days following the Russian authorities asserting that the country was contemplating embracing crypto for payments across the borders. The central bank of Russia, in recent January, suggested imposing a prohibition over the launch as well as the utilization of the entirety of crypto assets. The Russian authorities are discussing the concept of utilizing crypto for trade settlements beyond the borders, as revealed by the Financial Policy Department’s head at the Finance Ministry of Russia – Ivan Chebeskov.
