SWIFT Alternatives

Sanctions against Iran have prompted discussion, and investment, in an alternative technology that would not be under US jurisdiction (1). The idea caught on with Russia replacing SWIFT for a majority of their market transactions (2). The EU joined as well (3), causing the US to reprimand them for not joining the confrontation (4) and threatening them with fines (5).

The Iran sanctions might go down in history as one of the most laughable attempts to economically isolate a nation. Not only was the directive generally ignored, it even managed to launch new technologies that directly undermined the US’s place as the central hub of the trillions of dollars of financial transactions that take place on a daily basis. Backed by the BRICS countries, it is likely there will be a second global standard before long (6).

 

References

  1. Switzerland & Iran developing payment channel to bypass US sanctions

  2. Russia's Alternative to SWIFT Already Has Market Majority in Russia

  3. EU countries move to evade US’ Iran sanctions by setting up payment channel for ‘humanitarian’ trade

  4. Pence Berates EU At Warsaw Over "SWIFT Alternative" - Demands Allies "Confront Iran"

  5. US Threatens EU With Punishment Over Possible Iran Sanctions Evasion - Report

  6. BRICS countries to create own payment system to cut dependence on West