diff --git a/monero-harness/src/rpc/wallet.rs b/monero-harness/src/rpc/wallet.rs
index d31a8b21..cd92588c 100644
--- a/monero-harness/src/rpc/wallet.rs
+++ b/monero-harness/src/rpc/wallet.rs
@@ -1,6 +1,5 @@
 use crate::rpc::{Request, Response};
-
-use anyhow::Result;
+use anyhow::{bail, Result};
 use reqwest::Url;
 use serde::{Deserialize, Serialize};
 use tracing::debug;
@@ -121,6 +120,33 @@ impl Client {
         Ok(r.result)
     }
 
+    /// Opens a wallet using `filename`.
+    pub async fn open_wallet(&self, filename: &str) -> Result<()> {
+        let params = OpenWalletParams {
+            filename: filename.to_owned(),
+        };
+        let request = Request::new("open_wallet", params);
+
+        let response = self
+            .inner
+            .post(self.url.clone())
+            .json(&request)
+            .send()
+            .await?
+            .text()
+            .await?;
+
+        debug!("open wallet RPC response: {}", response);
+
+        // TODO: Proper error handling once switching to https://github.com/thomaseizinger/rust-jsonrpc-client/
+        //  Currently blocked by https://github.com/thomaseizinger/rust-jsonrpc-client/issues/20
+        if response.contains("error") {
+            bail!("Failed to open wallet")
+        }
+
+        Ok(())
+    }
+
     /// Creates a wallet using `filename`.
     pub async fn create_wallet(&self, filename: &str) -> Result<()> {
         let params = CreateWalletParams {
@@ -140,6 +166,10 @@ impl Client {
 
         debug!("create wallet RPC response: {}", response);
 
+        if response.contains("error") {
+            bail!("Failed to create wallet")
+        }
+
         Ok(())
     }
 
@@ -348,6 +378,11 @@ pub struct SubAddressAccount {
     pub unlocked_balance: u64,
 }
 
+#[derive(Serialize, Debug, Clone)]
+struct OpenWalletParams {
+    filename: String,
+}
+
 #[derive(Serialize, Debug, Clone)]
 struct CreateWalletParams {
     filename: String,
diff --git a/swap/src/main.rs b/swap/src/main.rs
index a088ed5e..bd7ec818 100644
--- a/swap/src/main.rs
+++ b/swap/src/main.rs
@@ -18,6 +18,7 @@ use crate::{
         initial_setup, query_user_for_initial_testnet_config, read_config, ConfigNotInitialized,
     },
     execution_params::GetExecutionParams,
+    monero::{CreateWallet, OpenWallet},
     protocol::bob::cancel::CancelError,
 };
 use anyhow::{Context, Result};
@@ -49,9 +50,11 @@ mod serde_peer_id;
 #[macro_use]
 extern crate prettytable;
 
+const MONERO_BLOCKCHAIN_MONITORING_WALLET_NAME: &str = "swap-tool-blockchain-monitoring-wallet";
+
 #[tokio::main]
 async fn main() -> Result<()> {
-    init_tracing(LevelFilter::Info).expect("initialize tracing");
+    init_tracing(LevelFilter::Debug).expect("initialize tracing");
 
     let opt = Options::from_args();
 
@@ -326,12 +329,35 @@ async fn init_wallets(
         bitcoin_balance
     );
 
-    let monero_wallet = monero::Wallet::new(config.monero.wallet_rpc_url, monero_network);
-    let monero_balance = monero_wallet.get_balance().await?;
-    info!(
-        "Connection to Monero wallet succeeded, balance: {}",
-        monero_balance
-    );
+    let monero_wallet = monero::Wallet::new(config.monero.wallet_rpc_url.clone(), monero_network);
+
+    // Setup the temporary Monero wallet necessary for monitoring the blockchain
+    let open_monitoring_wallet_response = monero_wallet
+        .open_wallet(MONERO_BLOCKCHAIN_MONITORING_WALLET_NAME)
+        .await;
+    if open_monitoring_wallet_response.is_err() {
+        monero_wallet
+            .create_wallet(MONERO_BLOCKCHAIN_MONITORING_WALLET_NAME)
+            .await
+            .context(format!(
+                "Unable to create Monero wallet for blockchain monitoring.\
+             Please ensure that the monero-wallet-rpc is available at {}",
+                config.monero.wallet_rpc_url
+            ))?;
+
+        info!(
+            "Created Monero wallet for blockchain monitoring with name {}",
+            MONERO_BLOCKCHAIN_MONITORING_WALLET_NAME
+        );
+    } else {
+        info!(
+            "Opened Monero wallet for blockchain monitoring with name {}",
+            MONERO_BLOCKCHAIN_MONITORING_WALLET_NAME
+        );
+    }
+
+    let _test_wallet_connection = monero_wallet.inner.block_height().await?;
+    info!("The Monero wallet RPC is set up correctly!");
 
     Ok((bitcoin_wallet, monero_wallet))
 }
diff --git a/swap/src/monero.rs b/swap/src/monero.rs
index caec8864..9d7bdec9 100644
--- a/swap/src/monero.rs
+++ b/swap/src/monero.rs
@@ -207,6 +207,16 @@ pub trait CreateWalletForOutput {
     ) -> anyhow::Result<()>;
 }
 
+#[async_trait]
+pub trait OpenWallet {
+    async fn open_wallet(&self, file_name: &str) -> anyhow::Result<()>;
+}
+
+#[async_trait]
+pub trait CreateWallet {
+    async fn create_wallet(&self, file_name: &str) -> anyhow::Result<()>;
+}
+
 #[derive(thiserror::Error, Debug, Clone, PartialEq)]
 #[error("Overflow, cannot convert {0} to u64")]
 pub struct OverflowError(pub String);
diff --git a/swap/src/monero/wallet.rs b/swap/src/monero/wallet.rs
index d9d7ea73..a53c06c3 100644
--- a/swap/src/monero/wallet.rs
+++ b/swap/src/monero/wallet.rs
@@ -1,6 +1,6 @@
 use crate::monero::{
-    Amount, CreateWalletForOutput, InsufficientFunds, PrivateViewKey, PublicViewKey, Transfer,
-    TransferProof, TxHash, WatchForTransfer,
+    Amount, CreateWallet, CreateWalletForOutput, InsufficientFunds, OpenWallet, PrivateViewKey,
+    PublicViewKey, Transfer, TransferProof, TxHash, WatchForTransfer,
 };
 use ::monero::{Address, Network, PrivateKey, PublicKey};
 use anyhow::Result;
@@ -94,6 +94,22 @@ impl CreateWalletForOutput for Wallet {
     }
 }
 
+#[async_trait]
+impl OpenWallet for Wallet {
+    async fn open_wallet(&self, file_name: &str) -> Result<()> {
+        self.inner.open_wallet(file_name).await?;
+        Ok(())
+    }
+}
+
+#[async_trait]
+impl CreateWallet for Wallet {
+    async fn create_wallet(&self, file_name: &str) -> Result<()> {
+        self.inner.create_wallet(file_name).await?;
+        Ok(())
+    }
+}
+
 // TODO: For retry, use `backoff::ExponentialBackoff` in production as opposed
 // to `ConstantBackoff`.
 #[async_trait]