The backbone of international money transfers since 1973 – SWIFT – faces a new contender in the form of blockchain technology. As a cooperative owned by 3,500 member institutions globally, SWIFT has facilitated seamless cross-border transactions but is not immune to challenges.
Blockchain, known for its decentralised and secure nature, materialises as a potential successor to SWIFT. The technology promises increased security, improved visibility, and efficiency in financial transactions. Unlike SWIFT, which relies on a network of member institutions, blockchain allows direct communication between banks, reducing costs and simplifying compliance measures.
SWIFT in Trouble
SWIFT’s struggle with security risks and the demand for increased automation creates an opportune moment for blockchain to make its mark. While SWIFT focuses on securing its systems and addressing the complexities of automation with its existing infrastructure, blockchain offers a fresh approach built on modern technology.
Future Perspectives
Blockchain may not entirely replace SWIFT, but it presents a promising future for the global interbank banking system. As the finance industry moves to a new era, the competition between established systems and disruptive technologies like blockchain will undoubtedly shape the existing fiscal infrastructure, delivering increased efficiency, security, and cost-effectiveness. The financial world faces upcoming transformation, and staying informed is more critical than ever.