Copy link
Increase text size
Decrease text size
Link copied

Digital currencies could challenge SWIFT's dominance, says Central Bank of Russia official

An official of the Central Bank of Russia believes that the rise of digital currencies could render the SWIFT network obsolete.

Central Bank of Russia / Image by: Wikimedia Commons

Wed, 30 Dec 2020, 08:28 am UTC

While companies are now adding cryptocurrencies such as Bitcoin (BTC) in their portfolios as an inflationary hedge, the adoption of crypto for cross-border payments has been increasing as well. An official of the Central Bank of Russia (CBR) is now predicting that the rise of digital currencies, which include both privately issued cryptos and central bank digital currencies (CBDC), could make the international payments network SWIFT obsolete.

According to First Deputy Governor of the Central Bank of Russia Olga Skorobogatova, the development of digital currencies could challenge the SWIFT payment system, reported. Skorobogatova pointed out that over 30 financial regulators are currency in the process of developing their national digital currencies.

Given the current pace of development in the sector, the CBR deputy director estimates that several countries will be launching their own CBDCs 5 to 7 years from now. With the anticipated technological development that would link these national digital currencies for trading and settlements, they might even make the existing payment system, SWIFT, redundant.

“Then, we can deal with direct integration issues. In this case, SWIFT may not be necessary because it will be a different kind of technological interaction,” Skorobogatova said. “However, the global banking network may become one of the platforms for the new form of national currencies.”

But the CBR deputy governor noted that there are some hurdles to overcome before full integration of digital currencies on a global scale can be achieved, according to One of these is that prior to launching a worldwide transaction network, “the security should be guaranteed fully in the technology behind cryptocurrencies.”

The Society for Worldwide Interbank Financial Telecommunications (SWIFT) is a member-owned cooperative that facilitates cross-border payments and financial transactions for its members. As of 2019, the system has more than 11,000 member financial institutions across more than 200 countries worldwide with around 33.6 million transactions coursed through the platform daily.

RT reported that some Western politicians have threatened to bar Russian banks from SWIFT as part of sanctions. In response to the threat, Russia starting working on an alternative called SPFS.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • silvastone
  • 2021.01.02 02:45:19
I lost my money a few months ago. I lost over $56,000, they denied my withdrawal request and and also left it pending. I reached out to them and they never responded back to my emails and calls. They eventually locked me out of my account. I had to reach out to a recovery expert [email protected]lliedrecovery. Org to help me recover all my money back. Thankfully I have gotten my money back.
  • 0
  • ·
  • 0
  • Bitcoin (btc) $47,742.00 (-6.21%)
  • Ethereum (eth) $1,538.49 (-5.49%)
  • Cardano (ada) $1.16 (+4.25%)
  • Binance Coin (bnb) $232.18 (-8.90%)
  • Tether (usdt) $0.994886 (-1.06%)
  • Bitcoin (btc) $47,742.00 (-6.21%)
Feb 26, 2021 (Friday)
BTC Surges by 1.31% Within 5 Mins, Marking 46,933.21 USDT
BTC Drops by 1.07% Within 5 Mins, Marking 46,102.3 USDT
Cryptocurrency Mining Possibilities Under Consideration In Belarus
BTC Tops List Of Crypto Net Outflow With $1.33 Bln In Past 18 Hours
CoinNess DeFi Report: Assets Locked In DeFi Mark $50.23 Billion
BTC Surges by 1.41% Within 5 Mins, Marking 45,964.43 USDT
Matrixport Announces Integration With Aave Protocol
The U.S. 10-year treasury bond yield fell 6 basis points to 1.45%.
Huobi Futures has adjusted the rules of funding rate and premium deviation for DOGE/USDT swaps and ZKS/USDT swaps, and the price limit mechanism for ZKS/USDT swaps.
NFT Collector Whale Shark Donates 1M WHALE To Charitable Trust
HM Treasury’s UK Fintech Review Calls For New Crypto-Assets Regime
DeFi Alliance Launches $15 Million Startup Investment Fund
Cream Finance tweeted, "Proposal passed! $UST will be added to C.R.E.A.M. on #Ethereum."
BTC Drops by 2.37% Within 5 Mins, Marking 44,575.3 USDT
BTC Drops by 1.07% Within 5 Mins, Marking 45,811.64 USDT
EIP-1559 Performance Test: 6426 Blocks Process In 22 Hours
OKEx To Suspend Deposit And Withdrawal Of ADA
Flare To Integrate $XLM As An F-Asset
SparkPool tweeted to appose EIP-1559.
24H Trading Volume Of Uniswap Tokens Marks $1.04 Bln
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.