‘Foreign Banks Being Connected to Iranian Alternative to SWIFT’
Iran’s Central Bank says a financial mechanism is being developed to replace SWIFT system for transactions with Iran, and foreign banks are gradually joining the new system, known as SEPAM, to conduct financial transactions with the Islamic Republic.
An informed source at the Central Bank of Iran said the issue is being followed
up and Tehran is working with some countries in this regard.
The official confirmed that all Iranian banks are connected to this system,
which is called Electronic Financial Messaging System, also known as SEPAM.
SEPAM has been implemented for computerizing the banking message interchanges
and for creation of an integrated infrastructure for banking services, the
central bank of Iran says.
"Of course, SEPAM is not the only mechanism, and the central bank is building
new platforms, and we are even launching different channels with some other
banks,” the source said.
The Belgium-based financial messaging service SWIFT recently suspended the
access of some Iranian banks to its messaging system upon the request of the US
government.
Recently, experts from Russia said that they will provide support for the
development of Iran’s crypto-economy. The cooperation is part of an agreement
reached by representatives of leading industry organizations from the two
countries, which are both subject to western sanctions.
The document has been signed by the Russian Association of Crypto-Industry and
Blockchain (RACIB) and Iran Blockchain Labs (IBL), an innovation hub tasked with
the implementation of digital technologies in the economy of the Islamic
Republic.
According to RACIB’s President, Yuri Pripachkin, Iran can take advantage of the
expertise of Russian block-chain developers. The situation created by the US
sanctions in Iran is much more complicated than in Russia, he remarked.
The country was recently cut off from SWIFT, but Pripachkin revealed that the
Iranian alternative to the global interbank network is currently under "active
development.”
"In the current geopolitical situation, it is necessary to utilize that
potential,” the head of the Russian crypto association added.
Recently, Iran’s Central Bank Governor Abdulnasser Hemmati announced Tehran will
use alternative banking options to replace SWIFT.
Source:IFP