The Society for Worldwide Interbank Financial Telecommunication (SWIFT) collaborates with the RMB Cross-border Payment System (CIPS) to provide local financial services and facilitate the internationalization of the RMB
In my country’s more open financial environment, in August 2019, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) officially established a wholly-owned Chinese legal entity in China, joined the China Payment and Clearing Organization, is supervised and managed by the People’s Bank of China, and can be denominated in RMB to provide localized products and services for the Chinese financial industry. The renminbi is the third international currency accepted by SWIFT after the US dollar and the euro. The cooperation between SWIFT and CIPS will jointly promote the internationalization of RMB. At the same time, there is a certain amount of competition between SWIFT and CIPS in traditional cross-border payments, which will prompt both parties to provide more detailed cross-border payment services.
CIPS China Cross-border Payment System
Supervise the offshore status of RMB
Improve the portability of RMB overseas use and settlement efficiency
Reduce the cross-border Moral risks in cross-border payment and settlement
Promote the opening up of China’s financial market
SWIFT financial information transmission channel
The role of SWIFT GPI:
Improve cross-border payment and settlement moral risks
Speed of cross-border payments
Improve transparency of cross-border payments
Full tracking of information
Reduce cross-border payment fees