St. Petersburg State University started the development of a blockchain-based SWIFT system counterpart

Distributed ledger technologies, in particular blockchain, act as a guarantor of system access, transaction security, and openness

12.04.2022 - 15:35

584

1 min

What’s new? Saint Petersburg State University (SPbU) has begun developing an alternative to the SWIFT system. The SPbU’s website reports that the Center for Distributed Registry Technologies is working on creating a decentralized international system of interbank financial messages using blockchain technologies.

The SPbU’s website

What is known about the new system? The principle behind the new solution is that each of the participating countries stores a part of the program code and database i.e. is a co-owner of the system. Distributed ledger technologies, including blockchain, will guarantee access to the system, transaction security, and openness. Dmitry Shishmakov, director of the Center for Distributed Registry Technologies at St. Petersburg State University, noted that with a new tool, banks will not be afraid of negative consequences, and states will be able to conduct more independent policies.

What is SWIFT? Society for Worldwide Interbank Financial Telecommunications is an international system for transmitting financial messages between banks. SWIFT was founded in 1973 by 248 banks from 19 countries. SWIFT is a cooperative society established under Belgian law and owned by its members.

On March 12, 2022, the EU disconnected Russian sanctioned banks from the SWIFT system: VTB Bank, Rossiya Bank, Otkritie Bank, Novikombank, Promsvyazbank, Sovcombank, and VEB.RF.

Author: