Russia claims it can reconnect to SWIFT at any time but questions its relevance as digital finance evolves. Could the SWIFT system become obsolete as BRICS nations develop alternatives?
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Russia asserts that it has the technical capability to reconnect to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) if necessary, but officials question its relevance in an evolving financial landscape.
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Anatoly Aksakov, chairman of the State Duma's Financial Markets Committee, told Tass that Russia's financial infrastructure is fully prepared. “I think [connecting to] SWIFT is generally not a problem; all our systems are ready. The main thing is that they want it. Do we need it? I think it can be beneficial, but at the same time, alternative systems need to be developed,” he said. He also downplayed the importance of SWIFT, stating:
In my view, SWIFT is dying; it is already an outdated technology.
Russia has been largely disconnected from SWIFT since 2022 due to Western sanctions following its military actions in Ukraine, cutting many Russian banks off from the global financial system. This has forced Russia to develop alternative mechanisms for cross-border transactions. Aksakov highlighted ongoing technological advancements, stating:
"The development of digital technologies and cryptographic instruments will lead to the fact that the settlement system will be built differently."
He suggested that SWIFT must either evolve or become obsolete, adding: “Either SWIFT will transform into some kind of information system that takes mutual settlements into account, or SWIFT will disappear.”
In the face of these challenges, Russia has strengthened its Financial Messaging System of the Bank of Russia (SPFS), which had 556 participants from 20 countries in 2023.
Beyond Russia, other countries, including those in the BRICS economic bloc, are also working on alternative financial systems. BRICS members have actively promoted trade in national currencies to reduce dependence on the US dollar and Western-controlled financial networks. China and India have increased transactions in yuan and rupees, while Russia settles its exchanges in rubles with several partner countries. The group is considering the creation of a joint payment system, potentially integrating their national financial messaging networks. With this shift, Russia and its allies are gradually moving away from SWIFT, enhancing their financial independence and reshaping global transaction systems.
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