Russia will develop its own blockchain system instead of SWIFT

The Russian state corporation Rostec has announced the development of a blockchain platform to launch its own digital payment system, which is intended to replace the SWIFT international money transfer system.

According to Rostec’s official statement, the CELLS blockchain platform «can become a real alternative to international payment services provided by the SWIFT system» (from which Russian banks have been isolated due to the Russian-Ukrainian war). In addition to the international payment service, the CELLS platform will provide its users with the ability to create cryptocurrency wallets and guarantee «high speed and secure transactions.»

Russia’s own digital system of international payments will allow it to pay for imports in its national currency, rubles, rather than dollars. According to Rostec, CELLS will also allow foreign countries to pay for exports from Russia in their national currencies.

Russian banks were excluded from the SWIFT system in February, thanks to sanctions imposed by Western countries over Russia’s attack on Ukraine. Since then, the Russian authorities have been looking for alternative ways to conduct financial transactions to pull the country out of the economic doldrums. In early May, Russian Minister of Industry and Trade Denis Manturov said that the Cabinet of Ministers would recognize digital currencies as a payment instrument (all to circumvent sanctions) and was already working on options to tighten control over the circulation of Cryptocurrencies and other virtual assets.