Russia builds SWIFT Replacement System
The US Sanctions in/around the long and grinding war in Ukraine restricted Russia's use of the global Banking messaging system SWIFT.
Sure, it's not really news that Russia shrugged off the US sanction aggression and set upon a course to building there own modern equivalent to SWIFT. Even as Russia asks for exceptions to use SWIFT for items such as 'Grain Initiative' to help get much needed grain to the global market and keep food inflation somewhat in check.
Russia finalized their system in April '24 - it's called Financial Transaction System (FTS)
The overall goal is to bring financial independence from Western financial constructs and financial weaponization. The Central Bank of Russia stated the rapid transition away from SWIFT was enabled by their SPFS (System for Transfer of Financial Messages) that was developed back in 2014.
What else could Russia be insulating itself from?
Need a hint? Protection from impending financial ruin. Russia has been collecting Gold as the West piles onto their debt loads by order of magnitudes. Russia has been paying for Gold via the FTS, not via SWIFT. Another benefit, Ruble's being accumulated by BRICS nations. Perhaps another motivator was Russia's greater ties to BRIC countries. With this system Russia can trade freely outside the peering eye's of the West's Dying Empires. Notice I listed that as a plural (one could infer UK/France/German/USA). Sure some could construe this as a form of De-dollarization, that's not the premise of this blog!
Russia's push into Crypto realm started way back in '22
I wrote a blog Russia and Iran Crypto Actions.
Russia has been exploring CBDC's as too with 12 banks and 9000 pilot customers. And publicly stated back in June of this year that all their International trade settlements would be done via CBDC within 5-years.
Summary
As globalization comes to an end Countries are realizing the need for independence and national interesting. Regardless what you think of the sanctions or the outcomes the need for independent systems makes complete sense. I don't have a dog in this fight just pointing out what is going on!
