Russian Blockchain as SWIFT Replacement to Prevent Bank and Nation Disconnection
A Russian university is ready to test a blockchain-based equivalent to SWIFT, the global payment messaging network that has been shut down by Russian banks under Western sanctions. The developers say their system does not allow the disconnection of countries and banks. Russian developers are building an alternative to SWIFT using a blockchain specialists from the Competence Center of the National Technology Initiative at St. Petersburg State University in Russia have announced that they are preparing to test a new interbank payment system as an alternative to SWIFT. Due to the financial constraints imposed by Moscow’s decision to invade Ukraine, the country is now inaccessible to large Russian banks. This university announced in a statement: A trial version of the decentralized interbank financial messaging system is ready for testing and can be deployed in banks.
The development team noted that using a distributed ledger to exchange financial messages across borders enables safe and secure transactions. It is the second blockchain project to replace Swift in Russia, after state-owned technology company Rostec announced a similar platform in June to facilitate payments between Russia and its allies. Russia also has its traditional SWIFT equivalent, the Financial Messaging System (SPFS), which was launched amid similar tensions after the 2014 annexation of Crimea. According to this report, about 70 companies from more than 12 countries have joined it so far. By SPFS. The Rostec CELLS platform also aims to provide international payments and multi-currency operations, as well as digital currency storage. Against the background of the ongoing military intervention in Ukraine, the Russian Federation is increasingly isolated from the world financial system, including its monetary reserves. In response, Moscow is trying to switch to payments in national currencies with its trading partners and is also considering the possibility of using digital currencies for international payments.