What is the alternative to SWIFT system? | Mint PrimerUpdated: 07 Oct 2022, 01:24 AM IST
- The Swift, or Society for Worldwide Interbank Financial Telecommunications, is the largest online international money transfer system. It is a vast messaging network used by banks and other financial institutions to send and receive money transfer instructions securely and promptly. SWIFT was formed in 1973 with 239 banks in 15 countries. In 2022, there are more than 11,000 institutions from over 200 countries connected to it across the globe. However, a select group of countries are no longer covered by the SWIFT umbrella. First, it was Iran and North Korea, and then Russia, in the wake of Russia's invasion of Ukraine. A discussion over an alternate payment system that facilitates payments between countries has been sparked as a result of this development. At the moment, Russia makes use of a system known as SPFS (System for the Transfer of Financial Messages), whilst China is working on building CIPS (Cross Border Interbank Payment System). In this video, let's have a detailed conversation about SPFS and also investigate whether or not crypto is a viable alternative to Swift.