SWIFT vs CIPS and SPFS
The Silent Battle of Global Finance
For decades, the global financial system has operated under the quiet but firm control of SWIFT—the Society for Worldwide Interbank Financial Telecommunication.
It’s not a bank, not a payment processor, but a messaging network that connects over 11,000 financial institutions in 200+ countries. Every time you wire money abroad, chances are it traveled through SWIFT’s corridors. In short: SWIFT is the nervous system of the global economy.
But a silent revolt is underway.
SWIFT: The Dollar’s Loyal Servant:
SWIFT is deeply entwined with the U.S.-led financial order. Over $6 trillion in daily transactions flow through it, mostly in U.S. dollars. This makes it not just a convenience—but a weapon.
When the U.S. or EU want to isolate a country, they often cut it off from SWIFT. That’s what happened to Iran, and more recently, Russia after its invasion of Ukraine.
Being locked out of SWIFT is like being exiled from modern finance.
CIPS: China’s Financial Firewall:
China saw the risks. What if Washington ever tried to punish it the same way? In 2015, Beijing launched CIPS (Cross-Border Interbank Payment System)—a yuan-based alternative to SWIFT.
While still small, it is growing fast:
· 1,500 participating banks across 100+ countries
· $17 trillion in total transaction value (2023)
· Built for yuan settlements, not dollars
Unlike SWIFT, CIPS can settle payments as well as send messages. It’s becoming the backbone of China’s Belt and Road Initiative, enabling trade in local currencies, especially with partners like Russia, Brazil, and the Gulf states.
But CIPS isn't yet a full rival—it still relies on SWIFT messaging for many of its transactions.
SPFS: Russia’s Sanction-Proof Lifeline:
After being kicked out of SWIFT, Russia turned to its own homegrown system: SPFS (System for Transfer of Financial Messages).
It’s a Russian-language SWIFT clone, built in 2014, now used by over 400 domestic banks and a growing number of foreign ones—particularly in Asia and former Soviet states.
Russia is now pushing to link SPFS with China’s CIPS, creating a SWIFT-free trading corridor between the two largest anti-sanction economies.
The Bigger Picture: Fragmentation Begins:
CIPS and SPFS are not just payment tools—they’re acts of financial sovereignty. They’re part of a wider de-dollarization movement. Countries like Iran, Brazil, and even Saudi Arabia are experimenting with non-dollar trade, often facilitated by these alternative systems.
Yet SWIFT’s dominance remains. It’s still the global standard, backed by legal, technical, and political trust. But its monopoly is weakening.
The world is no longer flat—it’s financially fracturing.
What Lies Ahead?
· Expect more bilateral trade in local currencies
· CIPS will grow along with China’s global trade influence
· SPFS may merge deeper with allied financial systems
· SWIFT won’t vanish, but it will no longer be untouchable
As global power shifts, so too does the plumbing of the financial world. The battle is quiet, digital, and deadly important. Not a war of bombs—but of bytes.