May 13, 2025
By Anjali Kochhar
As financial warfare becomes more complex, SWIFT, the backbone of the global banking communication network, is now locked in a digital arms race. With Russia and China increasingly turning to cryptocurrencies and alternative payment systems to bypass Western sanctions, SWIFT is under mounting pressure to maintain its relevance and security in a rapidly changing financial landscape.
Russia, facing sweeping sanctions over its invasion of Ukraine, and China, wary of similar risks, have both been exploring decentralised digital tools and national payment infrastructures. These include Russia’s SPFS (System for Transfer of Financial Messages) and China’s CIPS (Cross-Border Interbank Payment System), which aim to replace or reduce reliance on SWIFT. However, what’s more concerning for the West is their growing use of cryptocurrencies and blockchain technologies to facilitate cross-border transactions outside the purview of traditional financial controls.
SWIFT has intensified its security and monitoring efforts. Tom Zschach, Chief Innovation Officer at SWIFT, emphasised that the organisation is working closely with global banks to detect and prevent misuse of the network. “We are continuously evolving our tools to trace illicit finance and enforce compliance,” he noted.
Among the key measures introduced by SWIFT are the Customer Security Programme (CSP) and the Customer Security Controls Framework (CSCF), designed to help banks track suspicious activity. These tools are part of a broader strategy to ensure that the network is not exploited by sanctioned states using crypto assets.
Still, experts warn that decentralised finance (DeFi) and privacy-focused cryptocurrencies pose a unique threat. Their structure often lacks intermediaries, making regulatory oversight extremely difficult. For nations like Russia and China, this offers a strategic pathway to continue global trade without depending on Western infrastructure.
Analysts believe that the world is moving towards a fragmented financial system, with multiple regional or interest-based networks emerging. The dollar’s dominance is being challenged not only by rival state systems but by the rise of programmable money and central bank digital currencies (CBDCs).
As these trends accelerate, SWIFT’s ability to adapt will determine its future role. While it remains a vital artery for international banking, its monopoly is no longer guaranteed.
In this high-stakes global chess match, SWIFT is not just protecting transactions it’s defending the very framework of financial order. Whether it can outpace the crypto-powered disruption remains to be seen.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
