Russian authorities are planning to transfer the country's money transfer system to Blockchain technology in 2019 according to a report in Izvestiya.
Sources close to the Russian central bank told the media outlet that the Financial Communications Transfer System (SPFS) would be converted to a blockchain system. SPFS is the Russia equivalent of SWIFT. It was developed and implemented in 2014 following Western threats to withdraw SWIFT from Russia as part of sanctions for the invasion of Crimea. Russia developed its own version of Visa, called Mir, for the same reason.
This threat wasn't carried out in the end but is still under discussion. SPFS exists as an alternative system, and 582 Russian banks use the system as standard. The remainder keeps it in reserve should SWIFT be withdrawn.
According to the article, the transaction costs of the Russian system are lower than those of SWIFT. In February of this year, the central bank announced that the system had been extended to cover all countries of the European Economic Area - Marina Frolova, Deputy Director of Rosbank, told Izvestiya that SPFS must expand its user base in order to be considered a valuable alternative to SWIFT.
Tamara Kasyanova, managing director of a local audit company, said that transferring to blockchain technology will attract more people to use the new system.
Maxim Osadchy, head of the analytical department of a local bank, said: "The use of blockchain technology will undoubtedly increase the level of protection in relation to hacker attacks."
Here he refers to hack attacks which have been suffered by SWIFT users. For example, a Russian bank lost 6 million USD in February 2018 as a result of a hack involving SWIFT, and hackers attempted a larger heist on Globex in December 2017. The Bangladeshi central bank lost 101 million USD in this way in 2015.
A major world power transferring its entire national payment system to blockchain technology is a fairly significant development regarding cryptocurrency and mainstream acceptance.
The Central Bank of Russia is planning to replace their domestic version of SWIFT transactions with blockchain in 2019.
This is big & it won’t be the last. ??— Pomp ? (@APompliano) May 4, 2018
Russian authorities are planning to transfer the country's money transfer system to Blockchain technology in 2019 according to a report in Izvestiya.
Sources close to the Russian central bank told the media outlet that the Financial Communications Transfer System (SPFS) would be converted to a blockchain system. SPFS is the Russia equivalent of SWIFT. It was developed and implemented in 2014 following Western threats to withdraw SWIFT from Russia as part of sanctions for the invasion of Crimea. Russia developed its own version of Visa, called Mir, for the same reason.
This threat wasn't carried out in the end but is still under discussion. SPFS exists as an alternative system, and 582 Russian banks use the system as standard. The remainder keeps it in reserve should SWIFT be withdrawn.
According to the article, the transaction costs of the Russian system are lower than those of SWIFT. In February of this year, the central bank announced that the system had been extended to cover all countries of the European Economic Area - Marina Frolova, Deputy Director of Rosbank, told Izvestiya that SPFS must expand its user base in order to be considered a valuable alternative to SWIFT.
Tamara Kasyanova, managing director of a local audit company, said that transferring to blockchain technology will attract more people to use the new system.
Maxim Osadchy, head of the analytical department of a local bank, said: "The use of blockchain technology will undoubtedly increase the level of protection in relation to hacker attacks."
Here he refers to hack attacks which have been suffered by SWIFT users. For example, a Russian bank lost 6 million USD in February 2018 as a result of a hack involving SWIFT, and hackers attempted a larger heist on Globex in December 2017. The Bangladeshi central bank lost 101 million USD in this way in 2015.
A major world power transferring its entire national payment system to blockchain technology is a fairly significant development regarding cryptocurrency and mainstream acceptance.
The Central Bank of Russia is planning to replace their domestic version of SWIFT transactions with blockchain in 2019.
This is big & it won’t be the last. ??— Pomp ? (@APompliano) May 4, 2018
FAQs
SWIFT will showcase how its infrastructure can be used to ease blockchain interoperability with this new set of experiments. The first example will entail the movement of tokenised assets across two wallets on a designated public blockchain network.
What is Russian alternative to SWIFT? ›
The Russian SPFS international payment system, an analogue of SWIFT, is now available in over twenty-five countries.
Why is blockchain better than SWIFT? ›
In Summary. In terms of ease of use and speed, blockchains hold a significant advantage over SWIFT. Also, as we found out today blockchains process 6 times more transactions per second compared to SWIFT.
How do you transfer money through blockchain? ›
Select your Blockchain.com Account, Exchange Account or enter any other crypto address you'd like to send funds to and click Next. Enter the amount and click on Network Fee to select between Regular or Priority fee. Click "Preview Send" and then Confirm to finalise the transaction after double checking the details.
Which bank use blockchain technology? ›
List of Banks Using Blockchain Technology in India
| Private Banks Using Blockchain Technology | Public Banks Using Blockchain Technology |
|---|
| IndusInd Bank Yes Bank RBL Bank IDFC Bank South Indian Bank Federal Bank HDFC Bank ICICI Bank Kotak Mahindra Bank Axis Bank IndusInd Bank | Bank of Baroda SBI Canara Bank Indian Bank |
Sep 7, 2023
SWIFT Live Price Summary
Today's price of SWIFT is $0.00048092, with a 24-hour trading volume of $85.51. SWIFT is +0.51% in the last 24 hours, with a circulating supply of 259.60M SWIFT coins and a maximum supply of -- SWIFT coins.
What is replacing SWIFT? ›
In the ever-evolving world of digital finance, XRP, a cryptocurrency designed for seamless cross-border payments, is emerging as a frontrunner to replace the traditional SWIFT system and potentially become the preferred currency for Central Bank Digital Currencies (CBDCs).
Which crypto can replace SWIFT? ›
You not confuse XRP which is a token used on the Ripple network and therefore Ripple which is the network that aims to replace SWIFT as the global interbank payment system.
Who owns the SWIFT payment system? ›
SWIFT isn't owned by any single entity. Rather, it is a member-owned cooperative whose shareholders represent around 3,500 member organizations. Headquartered in La Hulpe, Belgium, the system is overseen by the central banks of the G10 countries, the European Central Bank, and the National Bank of Belgium.
What is the best blockchain in the world? ›
Here are nine of the top blockchain platforms to consider.
- Ethereum. Introduced in 2013, Ethereum is one of the oldest and most established blockchain platforms. ...
- IBM Blockchain. ...
- Hyperledger Fabric. ...
- Hyperledger Sawtooth. ...
- R3 Corda. ...
- Tezos. ...
- EOSIO. ...
- Stellar.
Some of the greatest alternatives are centralized databases, distributed databases, centralized ledgers, cloud storage, decentralized storage, etc. These blockchain alternatives offer diverse benefits, ranging from increased transaction speed and efficiency to enhanced scalability and data privacy.
Why blockchain is so safe? ›
Blockchains manage a large-scale record of transactions and additional data wrapped in several layers of data security. As a result, these systems are generally regarded as safe and secure. A blockchain is a digital ledger of transactions managed and updated by a distributed network of computers.
Can I withdraw my money from blockchain? ›
On the web
Login to your Exchange account via desktop web browser. Click Withdraw in the top right corner, select Crypto and choose the asset you'd like to withdraw. Next, type or paste the address to which you'd like to send funds to or select your Blockchain.com Wallet Account if you want to withdraw crypto there.
Can you convert blockchain to cash? ›
Use an exchange to sell crypto
One of the easiest ways to cash out your cryptocurrency or Bitcoin is to use a centralized exchange such as Coinbase. Coinbase has an easy-to-use “buy/sell” button and you can choose which cryptocurrency you want to sell and the amount.
Does blockchain accept bank transfer? ›
You can also call or visit your bank in-person for support with wire transfers. Please make sure to include your unique reference number with your wire. Without it, the wire transfer could fail. That's it, your deposit should arrive in your Blockchain.com Account in 2-5 business days.
Does Swift have crypto? ›
Swift Crypto is an open-source implementation of a substantial portion of the API of Apple CryptoKit suitable for use on Linux platforms. It enables cross-platform or server applications with the advantages of CryptoKit.
What can SWIFT code be used for? ›
SWIFT codes (also known as BIC codes) ensure safe and speedy international payments through the SWIFT system. When making an overseas transaction, a SWIFT code is used to verify the identity of the banks or financial institutions. This safety measure helps ensure that funds are sent to the correct account.
Is Swift using Chainlink? ›
Swift used Chainlink's Cross-Chain Interoperability Protocol (CCIP) to connect with different blockchains.
What currencies does Swift support? ›
List of accepted currencies ✅ (incoming SWIFT transfers)
| AED | United Arab Emirates dirham |
|---|
| USD | United States Dollar |
| XAF | Central African CFA Franc |
| XOF | West African CFA Franc |
| ZAR | South African rand |
29 more rows