A senior Russian parliamentarian stated that the Central Bank was working with the People’s Bank of China in order to find solutions that would allow these countries to bypass SWIFT’s bank network. This includes digital fiats and domestic alternatives, as well as blockchain solutions.
Per Tss, Via RAMBLER: Anatoly Aksakov, the Chairman of the State Duma’s Committee on the Financial Markets, stated that the central banks were examining interoperability options to allow Moscow’s SWIFT alternate SPFS to connect with China’s CIPS.
Aksakov claimed that trade between Russia and China had increased by over 40% in the first 2 months of 2022. This trend is expected to continue, especially if there’s a mutual SWIFT solution.
Western-led sanctions are threatening to expel SWIFT, a messaging system for banks, from Russia. Exporters are now more vulnerable than ever because of this.
But, Russia’s attack on Ukraine has made it more urgent to invent on this front of financial technology.
Aksakov was quoted as saying that in order to “remove all the risks” associated with trades conducted without a bank messaging system, interaction had to be established between the SPFS network (CIPs network) and the SPFS network.
