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It was always hard for me to understand exactly what SWIFT is. From what I could get, it’s a bunch of protocols that were standardized in order for banks to com
by baby 5y ago
It was always hard for me to understand exactly what SWIFT is. From what I could get, it’s a bunch of protocols that were standardized in order for banks to communicate between them. When you buy something in thailand with your apple card, barclay’s debit your account, talks to the feds, the feds talks to the BIS or some bank in thailand or some bank that might be able to talk to thailand, and so on. I think swift is the protocol each bank and central bank use to communicate.
If it is so, I’m not sure how you can cut swift from a country. It doesn’t sound like a centralized thing.
- dragonwriter 5y ago> If it is so, I’m not sure how you can cut swift from a country. It doesn’t sound like a centralized thing. Like any other sanctions: the government says “If you do X, don't do it with any Russian bank. If you do, people with guns will come, throw you personally in jail, and impose financial penalties on your business.” And then transactions from Russian banks to banks in countries with that kind of sanctions suddenly have a very high rate of falling into the bit bucket without having any business effect.