Currency War CHINA's CIPS vs SWIFT

After many years working in banking in the United States, I never thought I would see a moment like this within my lifetime.

The currency tensions between the USA and china are shaping and accelerating the development of china’s currency system, which is expanding globally, especially across Asia and Africa. Last years, American USD depreciation vs other currencies, creates a unique opportunity for the asian power.

China is extending its currency ecosystem beyond its borders, particularly in regions where trade relationships are strongest and fastest growing. China already represents over 15% of global trade, yet only around 3% of global payments are settled in Chinese LCY Yuan, showing how much room there is for expansion  .

CIPS (CIPS) launched is China’s answer to the limitations of SWIFT banking network. It enables direct RMB settlement and is growing rapidly in both volume and adoption. Today it connects more than 1,500 financial institutions across over 120 countries, with strong traction in Asia and Africa  . Countries like Singapore, Malaysia, the UAE, Saudi Arabia, South Africa, and Kenya are increasingly using RMB rails for trade settlement.

The war is not only FIAT! China has also launched the e-CNY, the digital yuan. This is not just a domestic experiment it is already being tested for cross-border use through central bank collaborations and pilot programs involving countries such as the UAE, Thailand, Hong Kong, and Saudi Arabia, particularly through initiatives like mBridge.

China is building the next layer: a digital payment infrastructure designed to support faster, more direct, and less intermediary-dependent cross-border transactions, with the potential to reduce settlement times from days to seconds and significantly lower costs

The global financial system felt stable, almost permanent. But what we are witnessing now is a real shift.