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September 28th , 2022

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Faiz Khairi

3 months ago

RUSSIAN COMPANY DEVELOPS NEW BLOCKCHAIN

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3 months ago

The Russian company announced the development of a blockchain platform to launch a digital system for international payments capable of replacing SWIFT. Rostec is a government organization consisting of Russian companies in the technology sector.

Russian banks have been exiled from the SWIFT system since last February due to sanctions imposed by Western countries in response to Russia's invasion of Ukraine.

Therefore, the Russian government is looking for alternative payment systems to protect international trade transactions.

Russian Company Presents Blockchain Platform to Replace SWIFT

The developed payment system helps Russia pay for imports using the national currency the ruble instead of the US dollar. According to Rostec, the system also allows foreign countries to pay for imports from Russia using their respective national currencies.

Rostec said the blockchain platform was called CELLS and was developed by the Rostec-affiliated Novosibirsk Software Systems Institute (NIPS), quoted from Be In Crypto.

CELLS is designed to provide an integrated system based on distributed ledger technology. The main components of this platform include a digital system for payments using the national currencies of the user's countries.

NIPS insists the new system could be a real alternative to the global payment system SWIFT, which has isolated Russian banks at the behest of Western countries. In addition to the payment system, CELLS added a wallet feature to store digital assets. Oleg Yevtushenko, CEO of the Rostec Group, promised the new international payment system would be able to provide high speed and secure transactions. He said the new digital system can process 100 thousand transactions per second with twice the chance of that number.

Yevtushenko explained that the payment feature using the national currency offered by the new system helps users to avoid Western sanctions imposed on Russia.

The Rostec Group is eyeing large companies with trade relations with Russia, government authorities of foreign countries doing business with Moscow and financial institutions and banks.

The announcement of CELLS follows the decision of the Russian government to adopt crypto assets for international payments. Ivan Chepskov, head of the Financial Policy Department of the Russian Ministry of Finance, said the government is discussing the use of cryptocurrencies for international trade transactions.

Despite the Russian Central Bank warning about the risk of crypto to the country's financial system, the Russian government has urged that cryptocurrencies be legalized in order to attract foreign investment and free domestic trade from the shadow of Western sanctions.

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