Russia Could Lead a Blockchain Revolution Instead
Launched in 1973, SWIFT has been the standard for bank transfers since it was introduced. The banking standard hasn't changed much since the 70's and is considered antiquated by many in the world of cryptocurrencies. Ripple's XRP has been aiming to replace SWIFT as a faster settlement option for financial institutions.
Over the past few years, the Russian Federation has been under a flurry of sanctions. These sanctions have impacted Russia's economy negatively for the past few years. Despite many anticipating that Trump would ease Russian sanctions, the opposite has occurred.
Russia SWIFT & Blockchain
As reported by RT, US officials have been floating the idea of cutting off Russia from the global SWIFT network since the conflict with Ukraine. Russian Prime Minister, Dmitry Medvedev has warned the US against such an action.
"This would in fact be a declaration of war, but nevertheless it was discussed," Medvedev said, adding that this is one of the reasons why the government is looking into ways to protect the Russian part of the internet.
So far, the Russian Government has been making preparations for the worst. They have announced that they are developing a similar system to SWIFT called SPFS. Additionally, they have been collaborating with Chinese CIPS and Iran's SEPAM.
For better or worse the Russian Government will not be able to work with XRP as Ripple is an American company. Hypothetically they could attempt to work with a blockchain company outside of the US to develop a more efficient payment settlement system.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado