The Russian government has announced it has developed a blockchain system. The aim is to launch a digital system for international payments capable of replacing the global Swift system.
This is coming after Russian banks were secluded from the SWIFT system. This was due to the sanction imposed by the western countries as a result of the Russian invasion of Ukraine.
Replacing SWIFT is a new blockchain system developed by Rostec, a government organization that includes a number of technology companies.
The digital system of international payments will allow Russia to pay for its imports in its national currency, the Ruble, instead of the dollar. It will also enable foreign countries to pay for their imports from Russia in their national currencies as well.
According to Rostec, the blockchain platform on which the international payments system was developed, is called CELLS.
What You Need To Know About the New Russian Blockchain System
The blockchain platform is designed to be able to provide an integrated system based on distributed ledger technology.
This includes among its central elements a digital system for making payments in the national currencies of the countries associated with it. In addition to its payment services, the CELLS platform provides its users with the ability to create wallets to store digital currencies.
According to the group, the platform will perform about 100,000 transactions per second, with the possibility of doubling this number.
What Rostec is Saying About its Blockchain Replacing SWIFT System
According to the CEO, Oleg Yevtushenko, the new system will enable users to circumvent Western sanctions imposed on Russia.
The Rostec group is therefore targeting large companies that have commercial relations with Russia. This include foreign government authorities that do business with Moscow as well as financial institutions.