Digital currencies may challenge SWIFT global payment Russian central bank

[Cordillerabit]

The Russian government has always been conservative on cryptocurrencies, but it has therefore actively developed Central Bank Digital Currency (CBDC). The "Digital Ruble" white paper published by the Central Bank of the country (CBR) in October this year mentioned that CBR believes that its existence will effectively inhibit the use of other less reliable digital payment instruments.

On the 26th, Olga Skorobogatova, the first vice president of CBR, told Russian state media "RT" that CBDC may eventually make the existence of the international financial transaction network SWIFT redundant.

Skorobogatova pointed out that more than 30 financial regulators are currently studying their CBDC. Judging from their development pace, some countries may launch this new form of currency in the next 5-7 years. Once CBDC issuance becomes more and more popular, it will challenge SWIFT's position in cross-border payments:

Then we can deal with the issue of direct integration. In this case, SWIFT may no longer be a necessity, because it will be a very different kind of technological interaction.

However, Skorobogatova added that SWIFT also has the opportunity to transform into one of the platforms for CBDC circulation.

SWIFT refers to the Association of Global Banks, Finance and Telecommunications, which is responsible for cross-border payment services between more than 11,000 financial institutions in more than 200 countries/regions. However, some politicians in the Western world threatened to cut off the link between SWIFT and Russia. The country therefore began to seek alternatives and is developing its own financial information dissemination network called SPFS.

Source: Bityard