Insights
China seeks positions digital yuan for cross-border trade settlements
China’s Cross-border e-CNY Transfer Services (CBETS) signals a strategic shift for the digital yuan from retail payments to wholesale cross-border settlement. By combining this blockchain-based e-CNY infrastructure with mBridge and CIPS, Beijing is building a layered alternative for trade finance, remittances and financial messaging across Asia, the Middle East and beyond.
SWIFT remains dorminant
SWIFT’s expulsion of seven Russian banks from the system two years ago has triggered various solutions to emerge, ranging from multi-country payment networks, digital instant payment systems, fintech solutions, CBDC cross-border projects, to cryptos. This aligns with the global demand for more diversified and less centralised channels for financial transactions.
The race for SWIFT alternatives
The recent cutoff of sanctioned Russian banks from SWIFT has sparked a race for alternative cross-border payment channels.