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SWIFT May Become Redundant With the Development of Digital Currencies: Russian Central Bank

According to a Russia Today report, in what may seem to be great news for crypto maximalists, the Central Bank of Russia is of the opinion that digital currencies may challenge and turn the SWIFT global banking payment system redundant. The news comes on the heels of five prominent Russian banks expressing interest in a Digital Ruble pilot program.

What is SWIFT?

For the uninitiated – SWIFT is a messaging platform that financial institutions and other banks utilize for assuring that the instructions and information are securely transmitted via codes. It allows transboundary payments and other facilities to more than 10,000 financial institutions worldwide. In other words, it is the payment system that the world uses to transfer funds across the planet.

According to Olga Skorobogatova, the First Deputy Governor, many countries might issue a central bank currency in the coming five to seven years, given the rate at which they are developing. 

RT reported Skorobogatova stated at a meeting the previous week:

“Then we can deal with direct integration issues. In this case SWIFT, it may not be necessary, because it will be a different kind of technological interaction.”

He further said that SWIFT could land up as being one of the platforms for the new central bank currencies.

Will Russia be Open to Mainstream Crypto Adoption?

It is likely that Russia would welcome and accept substitutes for SWIFT as the country’s banks have been pressurized with the removal from the network due to bigger sanctions against the nation and the CBR operating on their owned messaging system.

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