Blockchain Technology To Be Used By Russia’s SPFS Money Transfer System
We can see the tides turning for the adoption of Blockchain technology in establishment organizations. The central bank of Russia is getting ready to transfer payments on SPFS, which is its domestic version of SWIFT, to the blockchain in 2019.
System for transfer of financial messages (SPFS) is a “Russian analog to SWIFT” that has been developed by the Bank of Russia since 2014. That software package is designed to create and process documents in UFEBS (Unified Formats of Electronic Banking Messages) and MT formats. It was developed and implemented Western threats to withdraw SWIFT from Russia as part of sanctions for the invasion of Crimea. Russia developed its own version of Visa, called Mir, for the same reason.
A source close to the Central Bank of Russia reported that authorities are currently deciding on a blockchain solution on which to begin sending payments. This is a domestic effort to make use of the existing options available, which is most likely going to be Ethereum.
SPFS has a history of hacks and attacks that has escalated security concerns over the years. By integrating Ethereum to SPFS the system could become more reliable than the traditional technology supported by SWIFT. “Implementing blockchain technology undoubtedly raises the level of protection for SPFS in relation to hacker attacks,” a senior official at fellow bank BKF commented.
It is to be noted that there are no confirmed reports on this issue and the Central Bank of Russia is still to make an official statement regarding this. A world superpower transferring it entire national payment system to blockchain is a remarkable step in mainstream adaptability.