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Russia and Partners Develop Alternative Payment Systems to Bypass US Dollar
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Russia and its trade partners are constructing new currencies and payment systems to circumvent the US dollar and Western financial networks. This strategy counters economic sanctions imposed following Russia's actions in Ukraine.
Since 2014, Russia has been advancing its own financial infrastructures, such as the System for Transfer of Financial Messages (SPFS), a substitute for SWIFT, which is globally utilized for financial transactions. SPFS currently supports 556 organizations across 20 countries.
Russia has also connected its Mir payment system with Iran's Shetab, and is integrating with China's Cross-Border Interbank Payment System (CIPS) and India's Unified Payments Interface (UPI). These systems handle millions of transactions, challenging SWIFT's supremacy.
Moreover, Russia is exploring the use of central bank currencies and cryptocurrencies, and is considering the revival of barter trade, a direct exchange of goods without currency, reminiscent of the Soviet-era Comecon.
This transition jeopardizes the US dollar's global reserve status and diminishes Western financial hegemony.
| Scores | Value | Explanation |
|---|---|---|
| Objectivity | 6 | Comprehensive reporting and in-depth analysis. |
| Social Impact | 5 | Significantly influencing public opinion. |
| Credibility | 5 | Solid evidence from authoritative sources. |
| Potential | 6 | Almost inevitably leading to significant changes. |
| Practicality | 4 | Highly practical, directly applicable. |
| Entertainment Value | 2 | Includes a few entertaining elements. |