What is CIPS, an alternative to SWIFT

flies – who has no intention of remaining completely unguarded by payments with abroad – look at me China.

Block fast, Moscow looks to China

after expulsion from Swift – the global messaging system for banks – Part of the package Penalties imposed by Western countries following the illegal invasion of Ukraine. , Russian banks are approaching Cross-border interbank payment system (cybes)a payment system developed by China in 2015, mainly used for international credit settlement in yuan and related companies Belt and Road Initiative whose range is obviously much shorter than Swift.

translator: CIPS He still has a long way to go before he becomes a top contender but he’s definitely at a stage expansion. According to the state-owned Jiefang Daily, the Chinese system has treated roughly 80 trillion yuan ($12.68 trillion). In the 2021 (+75% YoY).

CIPS alternative to SWIFT?

It is clear that we will first have to deal with the caution of Chinese financial institutions in providing financial services to Russian companies and individuals to avoid them ending up in Scope of penalties.

Meanwhile, in the analysis of the Head of Fixed Income Research at Citic Securities, Ming Ming It states that “the digital yuan, currently being tested and intended primarily for domestic retail use, could potentially be used in trade agreements and this would be independent of the Swift system.”

yesterday SwiftHe announced that he was speaking with the “authorities.” Understand the entities that will be subject to these new measures‘, in order to separate them “As soon as we receive legal instructions in this meaning”.

In a press release posted on the financial firm’s website, it was confirmed that Swift “is aware of the joint statement of the leaders of the European Commission, France, Germany, Italy, the United Kingdom, Canada and the United States, in which they expressed their intention to implement new measures to restrict access to some banks.” Russian Federation to our Financial Messaging Services. “Diplomatic decisions prompted Swift to make efforts to end this crisis and We will always comply with applicable penal laws“It is underlined.

China dangers

However, Moscow cannot withstand too much pressure in China, both financially and from the point of view of commercial outlets for its gas. Because at that point Russia would end up becoming little more than a Chinese province, in stark contrast to Putin’s ambitions for expansion.

The EU Commission is evaluating the list of excluded banks

Meanwhile, lThe European Union continues to study Oceanexclusion. in proposal 7 Russian banks appearof between it No Gazprombank number, the financial company of the energy giant that handles transactions related to gas supplies. This would make it possible to solve problems related to supplies from various European countries including Italy and Germany.

Among the institutions excluded from SWIFT, the international system where information about payments passes across borders, Instead there will be VTB BankOne of the largest Russian institutes with branches all over the world.