Home News Russia will try a blockchain-based alternative to SWIFT system

Russia will try a blockchain-based alternative to SWIFT system

Big financial and technological market players from Russian FinTech distributed ledger technology development Association (FTA) will test blockchain system prototypes designed for financial transaction reporting, as reported by “Kommersant” outlet.

The testing will be carried out on the basis of blockchain-powered projects run by financial institutions with AFT membership. Corporate Treasurers Association (CTA) will participate in the project as well.

“CTA’s expertise will allow AFT to meet the expectations of the corporate financial market players in the process of implementing infrastructure projects,” – AFT Managing Director Tatyana Zharkova said.

According to CTA president Vladimir Kozinets, the company is interested in creating a comprehensive digital document handling system, the latter being the main project’s objective.

The testing is scheduled for the third quarter of 2018.

As of now, Russian financial market players use SWIFT financial messaging system or its Russian equivalent, namely, Financial Messages Transmission System (FMTS), which will switch to blockchain by 2019. As noted by Vladimir Kozinets, these systems fall short of meeting all financial corporations’ needs.

As reported last month, EAEU member countries have revealed their plans for introducing common cryptocurrency by 2020. Among other things, this project pursues the goal of creating an alternative to SWIFT system as well.