“Swift-Alternative Interoperability”, in which Russian and Chinese Central Banks Work Collaboratively

The issue of Swift Alternative Interoperability, which emerged according to the latest statements by the Russian and Chinese Central banks, is an important part of the agenda.

• -It was aimed by the senior Russian parliamentarian to produce temporary solutions to improve the banking network of the Central Bank for the countries and to help Swift.
• -It has been decided to work with the People’s Bank of China for the intended solutions. Thus, solutions will be reached in terms of domestic alternatives, blockchain solutions, and digital prices.

Per Tass provides elaboration on the subject by giving explanations. On this subject, Per Tass recently held a press conference with Anatoly Aksakov, Chairman of the State’s Financial Markets Committee, via rambler. At this press conference, he talked to the participants about the work of central banks in terms of the SWIFT alternative raised by Moscow. In particular, he stated that they would allow SWIFT alternative, SPFFS, to connect with China’s version. In this way, he added that they are working on solutions in terms of interoperability.

Explanations About Recent Situations

Anatoly Aksakov stated that there was a 40% increase in trade between Russia and China in the first months of 2022 compared to previous times. He also stated that if they work on a mutual SWIFT solution, this increase will be greater once these works reach an agreement.

• -SWIFT as a banking messaging network has done great harm to its exporters due to the exclusion of Russia as a result of Western-led sanctions. Excluded from its network, SWIFT exporters, along with the damage it has inflicted, have been waiting in Moscow and Beijing due to the need for alternatives at home, as previously reported. In addition, studies on this subject have been going on for years.
• -With the recent Russian attack on Ukraine, the need for innovation has emerged on the financial technology front. The rapidly increasing need for innovation has a visible effect on this issue. Some of Aksakov’s views on the conduct of trade without the solution of the bank message system are also explained. Aksakov, who stated that it is necessary to eliminate risks and to interact between SPFS and CIP networks, added some situations in his words. Aksakov also stated that besides blockchain-supported finance, progress should be made in the central bank.