Russia is Looking for Blockchain Solution to Transfer Payments from SWIFT

An interesting update on the intentions of Russian government to transfer payments on SPFS which is the domestic version of SWIFT, to the blockchain was reported recently. According to local news media outlet, Izvestiya, Russian authorities are currently deciding on a blockchain solution on which they will begin sending payments in 2019. According to the source, which as reported was citing information by the Central Bank of Russia, this blockchain solution can be either a homegrown effort or existing options such as Ethereum.

Although this information had not been announced directly by the Bank of Russia, the source claimed that two banking sources which were aware of these activities confirmed the plans to the publication.

According to a field analyst who was reporting to Izvestiya, the entire system can be able to even become more reliable than SWIFT when integrated for SPFS, which has been threatened by hacks and other security concerns over the past several years.

Senior official at fellow bank BKF stated an opinion that utilising blockchain technology would raise the level of protection for SPFS and will make it more reliable against hacker attacks.

Currently the actual amount that will become possible to save while switching to blockchain still remains unknown. The cost of using SPFS is currently about $0.03 per transaction while with the blockchain technology these costs are expected to be relatively lower.

Meanwhile this move can be considered as another major commitment from the Russian government regarding blockchain technology. As the field enthusiasts would confirm, Kremlin has made it well-known that Russia is highly interested in exploiting the new technology. There are also the planned cryptocurrency regulations by the government, which has been announced to come into force in July, 2018, expected in the country. Before that as well Moscow continues to see variety of use-applications for blockchain technology.

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