SWIFT CBDC threatens BRICS monetary project


7:17 a.m. ▪ 3 min reading ▪ by Luc Jose A.

A central bank digital currency (CBDC) linked to the SWIFT network should be launched within a few months. A new challenge for the BRICS which are also working on issuing their own currency. ?

BRICS: The alliance's currency threatened by SWIFT's CBDC

12 to 24 words for SWIFT's CBDC to challenge BRICS

The SWIFT network is the backbone of global banking transactions. A platform that BRICS announced they would leave to launch their own network. Recent news concerning SWIFT could make some people say that they are right.

Indeed, SWIFT is preparing to revolutionize the financial sphere with the introduction of its future central bank digital currency (CBDC). According to the information, this project under development is expected to be rolled out in the next 12 to 24 months.

This initiative marks a decisive turning point in relation to the domination of the American dollar, but not only that. Because SWIFT's CBDC could in fact compete directly with the expected BRICS currency.

Confirming the imminent launch of this CBDC, Nick Kerigan, head of innovation at SWIFT, indicated that the initiative paves the way for transformation. In particular that of the Western financial system with the objective of hegemony over the dollar.

SWIFT set to launch its own CBDC, which could compete with BRICS single currency

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BRICS plans threatened?

According to Nick Kerigan, SWIFT's CBDC underwent a successful six-month trial involving a diverse group of stakeholders. This would be the largest global collaboration on CBDCs and tokenized assets to date.

This progress suggests that SWIFT's CBDC could see the light of day before the BRICS currency. This perspective is not without effect, especially since it would allow it to quickly integrate into the global financial market.

This timetable means that SWIFT's CBDC threatens BRICS aspirations for dedollarization. Indeed, if it establishes itself as a preferred payment method, BRICS dedollarization efforts risk encountering considerable obstacles.

In short, potential dominance of SWIFT's CBDC represents a significant challenge to 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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Luc Jose A. avatarLuc Jose A. avatar
Luc Jose A.

A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this revolution in progress.

DISCLAIMER

The comments and opinions expressed in this article are those of the author alone, and should not be considered investment advice. Do your own research before making any investment decisions.

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