CHINA’S CIPS IN THE GLOBAL PAYMENT LANDSCAPE AS A STRATEGIC ALTERNATIVE TO SWIFT

Author(s): Nikolayevskiy D.D., Gorbacheva T.A.

Rubric: Domestic and foreign trade

DOI: 10.21777/2587-554X-2025-2-67-74

Release: 2025-2 (53)

Pages: 67-74

Keywords: SWIFT, CIPS, yuan internationalization, cross-border payments, global financial system, payment infrastructure, financial sovereignty

Annotation: This article presents a comparative analysis of the global payment system SWIFT and China’s CIPS system, designed for cross-border yuan settlements. The authors examine the historical development, functional capa- bilities, and current status of both systems. Particular attention is given to SWIFT’s advantages (global reach, universality) and its vulnerabilities (dollar dependence, political risks). The study provides a detailed analysis of CIPS’ objectives: reducing reliance on Western financial systems, promoting the yuan as an international currency, and safeguarding against sanctions. The technological features of the Chinese payment system are investigated, including its integrated clearing and settlement functions, adoption of the ISO 20022 standard, and potential integration with the digital yuan. The authors evaluate CIPS’ current limitations (narrow currency focus, smaller participant network) and its development prospects. The conclusion suggests a probable scenario of parallel coexistence, where CIPS will carve out a niche in yuan-denominated and alternative transactions without fully replacing SWIFT in the foreseeable future

Bibliography: Nikolayevskiy D.D., Gorbacheva T.A. CHINA’S CIPS IN THE GLOBAL PAYMENT LANDSCAPE AS A STRATEGIC ALTERNATIVE TO SWIFT // Economics and Management. – 2025. – № 2 (53). – С. 67-74. doi: 10.21777/2587-554X-2025-2-67-74