The use of SWIFT, a messaging network used by financial institutions worldwide, is unavailable to the banks in Russia. As an alternative, Rostec, a large corporation in manufacturing and technology, has recently developed a system. The system is primarily blockchain-based and will allow the storage of digital assets and the processing of international settlements.
Numerous banks in Russia have been disconnected as a part of western sanctions due to the conflict between Ukraine and Russia. Therefore, Rostec developed a blockchain-based platform to act as a suitable alternative for SWIFT. The platform is called CELLS. CELLS will facilitate Russian banking institutions to store digital assets and aid in international settlements between Russia and other global partners.
Due to the Russian invasion of Ukraine, the former has been cut off from global finances, trades, and foreign currency reserves alongside the traditional payment channels. As a result, the Russian government is trying for the payments to be in ruble and yuan as far as the trade deals with other countries are concerned. Moreover, the country is also contemplating using cryptocurrencies for such international matters.
Oleg Yevtushenko, the Executive Director at Rostec, believes that CELLS is a complete and efficient replacement for SWIFT. He added that such a blockchain-based platform would ensure irrevocable transactions with high speeds and more security.
Moreover, the country’s independent national financial policy will be ensured through CELLS. Furthermore, CELLS will allow Russia to switch to international settlement in the national currency, thus, eliminating the risk and the impacts of international sanctions.
CELLS is the product of NIPS which stands for Novosibirsk Institute of Program Systems. The product designers always wanted to create an ecosystem of software products based on distributed ledger technology (DLT). DLT allows international transactions, user identification, extra security, digital currency storage, and multicurrency trading.
CELLS will be able to perform 100,000 transactions within a second. The developers are hopeful that the speed will improve more in the future. Moreover, the creators promise numerous other aspects within CELLS like digital passports, digital housing, communal services, and a data storage system.