Russia claims it can reconnect to SWIFT anytime but questions its relevance as digital finance evolves. Could SWIFT become obsolete as BRICS nations develop alternatives?
Russia Calls SWIFT Obsolete—Is Crypto the Key to the New Financial Order?
Russia claims that it has the technical ability to reconnect to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) if necessary, but officials are questioning its relevance in the evolving financial landscape.
Anatoly Aksakov, head of the State Duma Committee on Financial Markets, told Tass that Russia’s financial infrastructure is fully prepared. “I think that [connection 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 may be beneficial, but at the same time alternative systems should be developed,” he stated. He also downplayed SWIFT’s importance, asserting:
From my point of view, SWIFT is dying, it is already a backward technology.
Russia was largely disconnected from SWIFT in 2022 due to Western sanctions following its military actions in Ukraine, cutting off many Russian banks from the global financial system. This forced Russia to develop alternative mechanisms for cross-border transactions. Aksakov pointed to ongoing technological advancements, stating:
The development of digital technologies and crypto-instruments will lead to the fact that the settlement system will be built differently.
He suggested SWIFT must either evolve or become obsolete, adding: “Either SWIFT will be transformed into a kind of information system that takes into account mutual settlements, or SWIFT will disappear.”
In response to these challenges, Russia has strengthened its domestic Financial Messaging System of the Bank of Russia (SPFS), which, as of 2023, had 556 participants from 20 countries.
Beyond Russia, other nations, particularly those in the BRICS economic bloc, are also working on alternative financial systems. BRICS members have been actively promoting trade in national currencies to reduce dependence on the U.S. dollar and Western-controlled financial networks. China and India have increased transactions in yuan and rupees, while Russia has been settling trade in rubles with several partner nations. The group is exploring the creation of a joint payment system, potentially integrating their domestic financial messaging networks. With this shift, Russia and its allies are gradually moving away from SWIFT, reinforcing their financial independence and reshaping global transaction systems.
