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Deputy governor of Russia’s central bank says cryptocurrencies could outshine SWIFT payment network.

Russian authorities are weighing whether to ban or legalize cryptocurrencies, a senior legislator has revealed.
Russian authorities are weighing whether to ban or legalize cryptocurrencies, a senior legislator has revealed.

According to Russin central bank’s deputy governor Olga Skorobogatova, the development of digital currencies makes international banking payment systems a topic of discussion, in the way that such traditional logic could become obsolete. The deputy governor backed her comments on the fact that over 30 financial regulators “are currently working on their national digital currencies.” Also, she believes several countries could launch their cryptos over the next 5-7 years.

Digital currencies may challenge the SWIFT payment network.

Olga Skorobogatova further noted, “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.” However, the global banking network may become one of the platforms for the new form of national currencies, she added. The Society for Worldwide Interbank Financial Telecommunication (SWIFT) system facilitates cross-border payments between 11,000 financial institutions in more than 200 countries worldwide. However, some Western politicians have threatened to disconnect Russian banks from the network as part of broader sanctions.

However, to achieve full integration of digital currencies, the deputy governor believes the security should be guaranteed fully in the technology behind digital currencies before thinking about launching a new global transaction network.

Russia is currently developing a digital ruble.

As reported earlier, Russia’s financial watchdog is currently developing a national digital currency. The new form of the Russian currency, which is supposed to exist along with cash and non-cash rubles, is to be test-launched as soon as next year in the Crimea. Earlier this year, Russia’s central bank said that the digital ruble might be used for international money transfers, but only after its global peers establish their sovereign digital currencies. At least 36 central banks have published studies on the Central Bank Digital Currency (CBDC) as of July this year, according to the Bank for International Settlements (BIS).