The global bank messaging system SWIFT is planning to launch a new Central Bank Digital Currency (CBDC).
— Michael Branch (@Michael63140627) March 27, 2024
The development puts the SWIFT CBDC in direct competition to challenge the yet-to-be-released BRICS currency.https://t.co/38FhTTLg6y
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Currency Wars: SWIFT Network Directly Challenges BRICS
Thu 28 Mar 2024 ▪
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Getting informed
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A Central Bank Digital Currency (CBDC) connected to the SWIFT network is expected to be launched within a few months. A new challenge for the BRICS who are also working on issuing their own currency.
12 to 24 months for SWIFT’s CBDC to Challenge BRICS
The SWIFT network is the backbone of global banking transactions. A platform that the BRICS announced they would leave to launch their own network. Recent news regarding SWIFT might make some think they are right.
Indeed, SWIFT is about to revolutionize the financial sphere with the introduction of its upcoming Central Bank Digital Currency (CBDC). According to information, this project under development is expected to be deployed in the next 12 to 24 months.
This initiative marks a decisive turning point compared to the US dollar’s dominance, but not only that. For, SWIFT’s CBDC could in fact directly compete with the long-awaited currency of the BRICS.
Confirming the imminent launch of this CBDC, Nick Kerigan, SWIFT’s Head of Innovation, indicated that the initiative paves the way for a transformation. Notably, that of the Western financial system with the goal of hegemony over the dollar.
BRICS’ Plans Threatened?
According to Nick Kerigan’s insights, SWIFT’s CBDC has undergone a successful six-month trial involving a diverse group of stakeholders. To date, this is the largest global collaboration on CBDCs and tokenized assets.
These advances suggest that SWIFT’s CBDC could be launched before the BRICS’ currency. This prospect is not without effect, especially since it would enable it to quickly integrate into the global financial market.
Such a timeline means that SWIFT’s CBDC threatens BRICS’ aspirations of dedollarization. Indeed, if it becomes a favored payment method, the dedollarization efforts of the BRICS risk encountering significant obstacles.
In summary, the potential domination of SWIFT’s CBDC represents a significant challenge for the BRICS’ plans. One thing is certain, the battle between SWIFT’s CBDC and the BRICS’ currency will determine the future of international finance in the years to come.
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Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
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