Monday, November 5, 2018

Russia's new payment system not only expected to be superior to SWIFT, but it will also be on the Blockchain by the end of 2019

As Russia transitions over from a defensive mindset to one that is now going on the offensive when it comes to global finance, their new payment system appears ready to become a game changer.  This is because their alternative to SWIFT is not only being forecast as superior to the Western based one that currently runs the global reserve currency, but it is also expected to be on the Blockchain by the end of 2019.

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. - Finance Magnates
Both Russia and China have in essence been forced to create SWIFT alternatives as the U.S. began to turn the global reserve currency into an economic weapon over the past decade.  And now with the growing push around the world by more and more nations to de-dollarize to not only protect their own currencies but also to protect against U.S. economic interventions , the two powers stand on the precipice of being able to seize much larger shares of trade payments using both the Ruble and the Yuan, which could inevitably act as an offensive countermeasure as dollars start to rush back to the U.S..

In addition, Russia's plan to put their new payments system on the Blockchain will make it easier for countries to have access to this platform, and to experience a more secure and transparent system.  And the ability for economies to conduct trade bi-laterally without having to use the dollar as a middleman is the likely future of global trade.


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