• Russian state-owned company reports success with blockchain platform
• Cryptocurrencies as a way to circumvent sanctions
Russia’s SWIFT ban is considered an extremely harsh sanction, as it makes it significantly more difficult for the country’s banks to make transfers nationally and internationally. Commodity trading in particular is to be impeded here, and the sanction can also help Russian companies to be unable to pay foreign debts. This would then disrupt the flow of goods again, as Deutschlandfunk explains.
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Blockchain platform should be able to replace SWIFT
Accordingly, it is not surprising that Russia is looking for ways and means to mitigate the consequences of the SWIFT ban and is targeting alternatives. Blockchain technology could offer an opportunity here. The Russian state-owned company Rostec recently reported in a press release that a milestone in the direction of international payment transactions had been reached with the help of the “CELLS” blockchain platform. It states that the CELLS platform is a key element in the field of digital payment systems and has the potential to replace SWIFT. The platform would enable international transfers, as well as transactions in different currencies and cryptocurrencies.
Rostec CEO Oleg Yevtushenko is quoted in the press release as saying: “A digital payment system based on a blockchain platform can be used as a full-fledged replacement for SWIFT, providing high speed, security and irrevocable transactions. The system will allow move to local currency settlements, eliminate the risk of sanctions and ensure the independence of national fiscal policies for clearing participants.” Rostec sees “independent software developers, system integrators, large companies as well as authorities, financial institutions and banks” as possible users of the platform.
Russia changes attitude towards cryptocurrencies
In the wake of the Ukraine war, Russia’s attitude toward cryptocurrencies has turned 180 degrees. While the Russian Federation toyed with the idea of completely banning cyber currencies at the beginning of the year, the Russian government and the country’s central bank are now working on setting up a legal framework to allow cryptocurrencies as a means of payment. The introduction of the digital ruble is already planned. Accordingly, the Western community is concerned about the prospect of cryptocurrencies being used to circumvent sanctions. That’s what the ECB chair said Christine Lagarde At the end of March, cybercurrencies “are certainly being used at this moment to circumvent the sanctions that many countries around the world have decided against Russia.” However, it remains to be seen whether the CELLS platform will also contribute to this trend or even completely replace the SWIFT system.
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