Well, I guess that was inevitable once the West started cutting people out. It's not a complicated idea by modern standards.
this post was submitted on 26 Jul 2024
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It's an incredibly complicated thing to implement, even if white Europeans did it first.
In the 60s or whatever, I'm sure it was. In the days of the fediverse and massively distributed supercomputing, though?
It's just a way to settle accounts by wire, right?
Uh, security at multiple levels, dispute resolution, dealing with inaccurate floating point math, CAP theorem limitations, throughput.... And those are just the challenges I can come up not having worked in the financial clearing domain.
No. You cannot just build one of these at a code jam, you cannot launch a startup to build one of these in a few months. It's a system with one of the highest fidelity requirements outside of medical equipment. Even space technology is allowed to fail for being off by a little bit. Financial systems at scale are hella difficult.
TIL about the CAP theorem.
As I understand it, they use fixed point values in finance, so it's not any worse. You could use arbitrary precision arithmetic if performance wasn't an issue, but it is, and why would you want that anyway?
I can't really comment on scale, but it's been a couple years Russia got kicked out of SWIFT, so they've had time.
Russia's not going to develop it on it's own. It would need to be organized internationally through multi-stakeholdership in order to generate the trust required by all the nation. The systems design is one thing, but the political design is something else entirely. Who runs it, who audits it, how they audit it, who can change it, how decisions get made, incident response protocols, breach disclosure agreements, etc. Developing the governance system for it would likely take far more person-hours than developing the technology
Yeah, a few other countries are mentioned. Obviously this is do to Russia getting kicked out of SWIFT, given the timing and that SWIFT has been around and used by everyone for decades.
I'm sure governance is a huge job. The political will is definitely there, though.
You say that, but they have to get it right first go, and it's also the question of how it'll interact with SWIFT.
Does it dovetail with SWIFT? It really sounded like it's just a competing system.
I don't know. The article quotes the Russian ambassador saying it needs to integrate with the banks and whatever systems are in place currently for each country, but that doesn't necessarily mean SWIFT as well. But even if it's a direct competitor, the possibility of future SWIFT integration has to be considered. I'd be surprised if they blanket never wanted it to happen.
The article doesn't make it clear if they're talking about something for people or just institutions.
From what I've read the goal is to create a settlement currency akin to Bancor aimed at state level transactions.
Wasn't mBridge meant to satisfy that?
Seems like not, I guess we'll see what this will look like soon.
Mission Accomplished!
There are lots of details left to hammer out. This is like an announcement that there will be a committee to commission a study to hire a contractor to change a light bulb. The process will likely take a while and may not complete at all.
That's some adorable coping right there.
Oh? Do you know details on how it's going to work? All I can find is the BRICS Pay site with a very high level overview. They're talking a big game, but as of now all that seems to be public is just talk.
Every indication that it's going to work in style of Bancor, and it's not a difficult thing to implement. It's also very obvious that there is a huge incentive to create an alternative to SWIFT now with US being belligerent towards all the major countries that form BRICS. If you don't understand that BRICS will have its own system of settlement in short order then you're going to be in for quite the surprise.