Russian blockchain alternative to SWIFT to prevent disconnection of nations, banks
Russian Cryptocurrency
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Russian blockchain alternative to SWIFT to prevent disconnection of nations, banks
A Russian university is set to test its blockchain-based analog for the global payment messaging network SWIFT, from which Russian banks were cut as part of Western sanctions. The developers say that their system will not allow countries and banks to disconnect.
Russian developers creating SWIFT alternatives using blockchain experts from the National Technology Initiative's Capability Center at St. Petersburg State University in Russia announced that they are preparing to test a new interbank payment system as an alternative to SWIFT . The latter is now inaccessible to major Russian banks as a result of the financial sanctions imposed on Moscow's decision to invade Ukraine.
Alexander Kiriev, the center's technical director, said preliminary testing showed good results. Transfer speeds currently exceed 25,000 messages per second on a single node and the capacity of the network may be increased in the future. Quoted by Russian crypto news outlet Bits.media, the university elaborated that the platform can grow and integrate into new financial organizations.
Its representatives also emphasized that it would be impossible to disconnect any participating state or banking institution as each customer would have the same rights and access as any other. Russia also has SWIFT's more traditional counterpart, the System for the Transfer of Financial Messages (SPFS), which was launched in 2014 amid similar tensions after the annexation of Crimea.
According to the report, about 70 organizations from a dozen countries are already associated with the SPFS. Rostec's SAIL platform aims to enable international payments and multi-currency transactions as well as digital currency storage.
Amid the ongoing military intervention in Ukraine, the Russian Federation is increasingly cut off from the global financial system, including its foreign exchange reserves. In response, Moscow is trying to transition to payments in national currencies with its trading partners, while also considering the possibility of using cryptocurrencies for international settlements.
Blockchain, Ukraine, SWIFT, SPFS, Russian Crypto, Cryptocurrencies, Ukraine, Russian Banks