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Swift won't die until either the US Dollar dies, or the government replaces it with something newer. EDIT: Technically, the US Government doesn't "control" SW
by MR4D 5y ago
Swift won't die until either the US Dollar dies, or the government replaces it with something newer.
EDIT:
Technically, the US Government doesn't "control" SWIFT, but through banking regulations, their influence is way bigger than it looks than their 2 board seats would suggest.
- tsimionescu 5y agoThe supremacy of the US dollar is partly held up by SWIFT. If most countries move to non-SWIFT payments, the US dollar will weaken.
- MR4D 5y agoThe Dollar may indeed weaken, but then Americans will not be able to afford to buy as much imported goods from other countries, which will hurt those exporters. China will probably lose the most.
- MR4D 5y agoI notice this post got some downvotes. My statement is not a political one, it is a practical one. Anyone who works with SWIFT understands that the system exists at the pleasure of the Americans. If the US decides to not allow SWIFT, then it will disappear quickly. Likewise, the US has the ability to regulate, and does regulate, the systems that are used for transferring money. And to quote from the FFIEC [0], who regulates this stuff (well, one of the regulators at least): "SWIFT is used to transmit foreign exchange confirmations, debit and credit entry confirmations, statements, collections, and documentary credits." That's a ton of US Dollars that aren't going away, so SWIFT won't either. [0] - https://bsaaml.ffiec.gov/manual/RisksAssociatedWithMoneyLaunderingAndTerroristFinancing/08 https://bsaaml.ffiec.gov/manual/RisksAssociatedWithMoneyLaun...