Russia announces plans to use blockchain system to replace SWIFT

In light of its offensive launch on Ukraine, Russia has received several sanctions from countries disapproving of its actions. In February, Western nations excluded Russian banks from the Belgium-based SWIFT messaging system.Russia’s search for alternatives to SWIFT, as well as to evade other international sanctions, has led it to explore blockchain technology and other digital currency solutions.

Rostec, a state-owned defense conglomerate headquartered in Moscow, has announced that it has developed a blockchain platform that can be used for international settlements. Named the CELLS industrial blockchain, it is Russia’s purported replacement for SWIFT.

In its press release, the company highlighted that the CELLS blockchain was developed by one of its 700 subsidiaries named Novosibirsk Institute Software Systems (NIPS). The platform is multifunctional and can handle up to 100 thousand transactions per second, with the potential for further increases in throughput.

The platform is designed to be able to provide an integrated system based on distributed ledger technology. According to the Russian group, the platform includes among its central elements a digital system for making payments in the national currencies of the countries associated with it.

According to Rostec Executive Director Oleg Yevtushenko, the platform will allow for settlements in national currencies and allow Russia to circumvent all international sanctions.“The system will make it possible to switch to settlements in national currencies, eliminate the risk of sanctions and ensure the independence of the national financial policy for clearing participants,” Yevtushenko said.

In addition to the international payments service, the CELLS platform provides its users with the ability to create wallets to store digital currencies, according to the statement.