Yogthos
China's digital RMB cross-border settlement system is now connected to ten ASEAN and six Middle Eastern countries, bypassing the SWIFT system for about 38% of global trade.
SWIFT transactions can take several business days to complete and can be expensive due to intermediary bank fees.
Digital RMB is faster and cheaper than SWIFT facilitating both domestic and international transactions.
Fish of Rage
Fish of Rage
clacke
@sun Very little is said in the links about what the settlement system actually is, but it does say this:
Beyond speed, the digital RMB’s built-in compliance tools are drawing global attention. Its blockchain architecture enforces anti-money laundering protocols automatically, reducing fraud risks while maintaining traceability. [ . . . ]The dramatic reduction in transaction times and costs, combined with programmable compliance features and integration into strategic infrastructure like the Belt and Road, presents a credible and scalable alternative to the traditional financial system.
clacke
Thomas
implying that about 38% of global trade could bypass the US dollar dominated SWIFT network
I'd be curious to know what the real figure is, but 38% is a potential, not a reality
Thomas
@clacke I hope you're right, it'd be great if it really did displace SWIFT. As that linked article mentioned, the Caribbean also needs something similar (and maybe they just link in to the eCNY)
clacke
@tfb I get the impression that it's not yet live, and "is now connected" does not mean "can now be used by random businesses and individuals".
Once it is live though, it's seems silly to even be asking people "would you like use the old, slow and expensive system or the new near-instant one?".
Thomas
@clacke That's what I suspected. I wonder what percentage of their trade is using this versus SWIFT, but that's probably a difficult number to find out
clacke
> 90% of trade BRICS does is not between themselves but with the West, RMB is less used than EUR
@WoundClad Yes, China is keeping a tight rein on their currency. Their digital currency is one way they are going to be easing up on that.
Regarding who they are trading with, the US is currently working hard on shrinking its economy and isolating its trade from the rest of the world. Europe, China and the rest of BRICS will pick up the slack.
WoundClad
@clacke @tfb @yogthos
It is still complete propaganda, btw @jwildeboer congratulations for spreading it.
You must be anti-freedom so much that you'd rather lick the boot of totalitarian countries which you do out of pure zealotry for imagined ideals supposedly there, same idiocy as the right thinking russia is conservative
90% of trade BRICS does is not between themselves but with the West, RMB is less used than EUR
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