Categories: B2B Payments

Russia Prepares For SWIFT Exit With Blockchain

Russia’s corporate treasurers are working with the nation’s central bank on a blockchain initiative, reports in CoinDesk said Friday (June 15).

The Russian Association of Corporate Treasurers is joining the government-led Masterchain blockchain initiative, a platform developed by the central bank to facilitate communication within Russia’s banking market. Russia is reportedly looking to use the platform to replace SWIFT’s inter-bank communications network.

Russia’s FinTech Association and 14 of the nation’s largest banks collaborated on the development of Masterchain, reports noted, citing a white paper. The initiative eventually hopes to join banks and government agencies that collaborate on contract registration and regulation.

Using Masterchain will reduce operating costs by up to five times, the white paper claims, and will accelerate contract processing.

Reports noted that the initiative is also looking to develop a Know Your Customer (KYC) mechanism based on digital identities, enabling financial institutions to share underwriting information like credit histories, as well as information about fraud cases, via a secure platform.

European Union sanctions against Russia for its annexation of Crimea in 2014 sparked concerns that SWIFT may remove Russia from its system. Reports said that has forced the country to experiment with alternatives to facilitate payments and inter-bank messaging and communication.

Earlier this year reports in The New York Times said Russia has taken aggressive steps to become a global leader in blockchain technology. The nation participated in an international delegation last year to discuss standards for blockchain and cryptocurrencies; its delegation head Grigory Marshalko expressed a desire for Russia to lead the world on the technology.

“Look, the internet belongs to the Americans — but blockchain will belong to us,” he said according to reports, citing an unnamed delegate present at the time.

Last year reports emerged that Russian president Vladimir Putin had considered investing in Ethereum.

Get our hottest stories delivered to your inbox.

Sign up for the PYMNTS.com Newsletter to get updates on top stories and viral hits.

——————————

PYMNTS STUDY: THE CROSS-BORDER MERCHANT FRICTION INDEX – JUNE 2020

The PYMNTS Cross-Border Merchant Friction Index analyzes the key friction points experienced by consumers browsing, shopping and paying for purchases on international eCommerce sites. PYMNTS examined the checkout processes of 266 B2B and B2C eCommerce sites across 12 industries and operating from locations across Europe and the United States to provide a comprehensive overview of their checkout offerings.

Recent Posts

Palantir Raising Nearly $1B From Investors

Palantir Technologies has a lot of irons in the fire as it reportedly gets ready for an initial public offering…

46 mins ago

Corona Beer Parent Company Tops Off DTC Trend

The direct-to-consumer (DTC) trend attracted another big name this week, as Corona beer’s parent company, Constellation Brands, acquired media agency…

1 hour ago

The Pandemic’s Effect On Subscriptions And Luxury Goods

Orders to stay at home have consumers spending more on subscriptions – from streaming services to purchasing retail merchandise for day-to-day use.…

1 hour ago

Saving Main Street: College Towns Deal With Economic Devastation

Downtowns everywhere from Maine to California are dealing with varying degrees of economic and existential pain as a result of…

1 hour ago

Pandemic Brings Dark Days For Department Stores

If department stores survive this pandemic, July 1, 2020 will almost certainly mark the point where the format reached one…

1 hour ago

Walmart To Transform Parking Lots Into Drive-In Cinemas, Offer Virtual Camp

To provide entertainment to families amid the coronavirus pandemic, Walmart unveiled a virtual experience and an in-person “contact-free” experience. The…

1 hour ago