Digital currencies may render SWIFT payment network redundant- Russian Central Bank
2 min read- Russia’s Central Bank Deputy Governor says digital currencies would make SWIFT network redundant.
- Russia’s Digital Ruble could be used for international transactions
With the growing adoption rate of digital currencies by different countries of the world, there just might be no more room for The Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment system again. This was made known by Olga Skorobogatova, who is the Deputy Governor of the Central Bank of Russia.
SWIFT is a payment system that allows international transactions between over 10,000 financial institutions that are spread across the different continents of the world.
Olga went on to add that the rate at which different countries have been working on digital currencies, there could be a launch of these new forms of currencies in the space of the next 5-7 years.
This, she believes, would lead SWIFT into redundancy as it would require a different form of technological interaction. She, however, noted that the SWIFT network could still go on to serve the new form of currency.
It should be noted that Russian banks are already being threatened that they would be disconnected from the network as a form of sanctions imposed on the country.
Presently, over 30 countries have been developing their national digital currency. China leads the pack with its Digital Yuan, while the Bahamas has Sand Dollars. Japan, Switzerland, Turkey, Russia and a host of others have also been working assiduously on developing their personal digital currencies that would complement their fiat currency.
Digital Currencies: Russia’s Digital Ruble
The report from Russia Today has disclosed that Russia is working on its own digital currency that would be known as Digital Ruble.
According to the report, the digital currency is expected to co-exist with cash and non-cash rubles and it is going to be tested in Crimea by next year.
Russia’s Central Bank has also declared that the digital ruble could be used for international transactions. However, this depends on other countries who are also working on their digital currency.
