Help with my assignment!
Read Time:1 Minute, 59 Second

Rostec, the Russian manufacturing and technology conglomerate, has developed a system allowing the processing of international settlements and storage of digital currency. The blockchain-based platform has been announced as an alternative to SWIFT, which is unavailable for some Russian banks.

Rostec Employs Distributed Ledger Technology to Substitute SWIFT

Russian state-owned corporation Rostec has built a platform using blockchain technologies to facilitate international settlements between Russia and its partners and the storage of digital currency. CELLS is intended as an alternative to the global payment messaging system SWIFT, from which a number of Russian banking institutions have been disconnected as part of western sanctions.

Russia has been increasingly cut off from global finances, foreign currency reserves, and traditional payment channels as a result of its invasion of Ukraine. The government in Moscow has been trying to transition to payments in national currencies such as the ruble and the yuan in its trade deals, and is also considering the possibility of using cryptocurrencies for international settlements. This, as Russia’s largest companies and importers are facing difficulties in their U.S. dollar payments.

According to Rostec Executive Director Oleg Yevtushenko, “a digital payment system based on a blockchain platform can be used as a full-fledged replacement of SWIFT, providing high speed, secure and irrevocable transactions.” Quoted by RBC Crypto, he added that CELLS will make it possible to switch to settlements in national currencies, eliminate the risk of sanctions, and ensure the independence of Russia’s national financial policy when it comes to clearing.

CELLS is a product of the Novosibirsk Institute of Program Systems (NIPS). Its designers wanted to create a complete ecosystem of software products and services based on distributed ledger technology (DLT) that enables international payments, multicurrency transactions, user identification, and digital currency storage, the report details.

The system will be expected to process up to 100,000 transactions per second with the option to increase its capacity in the future. Based on CELLS, a data storage system, a platform for creating web applications, a “digital passport” service, a “digital housing and communal services” system, and other solutions will be implemented, the creators promise.

Do you think Russia will be able to successfully substitute SWIFT with CELLS in its international trade relations? Share your thoughts on the subject in the comments section below.

One thought on “Russia’s Industrial Giant Rostec Announces Blockchain-Based Alternative to SWIFT

  1. So as the merge has come and gone smoothly. It leaves me with one question really, will us small guys ever be able to move off an exchange and stake from a wallet?

    If I had to take a wild guess, I would say around 50% of this subreddit has a portfolio of somewhere between $5-$10k in various coins in the crypto space. And I think that’s being generous.

    As it stands as the price of around $1500 to make rounding easier as of writing. You would need around $50k of investments in crypto alone if you wanted to stake your ETH off an exchange. That’s not realistic for 90% of this subreddit I would say.

    ETH becoming POS has moved it closer to centralization , which I know all oppose. Crypto was meant to be decentralized and at least POW provides that with anyone being able to mine a token fairly easy.

    So this leads to couple important questions:

    Will ETH always require 32 coins to be a self validator?

    Or will there be updates in the future that will reduce the cost to a couple coins to be a validator.

    Why exactly do we need 32 to begin with?

Leave a Reply

Your email address will not be published.

  • bitcoinBitcoin (BTC) $ 19,477.32
  • ethereumEthereum (ETH) $ 1,338.96
  • tetherTether (USDT) $ 1.00
  • usd-coinUSD Coin (USDC) $ 1.00
  • bnbBNB (BNB) $ 282.90
  • xrpXRP (XRP) $ 0.437314
  • binance-usdBinance USD (BUSD) $ 1.00
  • cardanoCardano (ADA) $ 0.434170
  • solanaSolana (SOL) $ 34.18
  • dogecoinDogecoin (DOGE) $ 0.060187