China has launched an "alternative" to SWIFT. Answers to the main questions

China has implemented its own Renminbi Digital international payment mechanism to use the e-CNY digital yuan. It is considered as a possible replacement for the traditional interbank messaging system. The service is already operational, in particular, in Russia, the countries of Southeast Asia and the Middle East. What you need to know about this system is in the Izvestia article.

How does Renminbi Digital work?

• In 2025, the People's Bank of China launched the full-fledged operation of the Renminbi Digital system, which provides cross-border transactions using the digital yuan, known as e-CNY. It opens up new opportunities for international settlements, allowing companies and financial institutions to work with Chinese currency in digital form.

• Each issue of the digital yuan exists as a unique record secured by a government issuer. e-CNY is a full—fledged analogue of the ordinary Chinese yuan, so it has the same legal force and is used in everyday calculations in the same way as the usual means of payment.

• Renminbi Digital assumes a two-tier model. First, the central bank issues units of digital currency and transfers them to authorized financial institutions. They ensure their further circulation among the population, business and government agencies.

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Why was the digital yuan created?

• The digital yuan was originally created to increase the efficiency of the national payment infrastructure and move away from the dollar. It provides instant transfer of funds and opens up opportunities for transactions even in the absence of an Internet connection. This, of course, simplifies access to financial services in regions where traditional banking instruments are used to a limited extent.

• An important element of the platform is the ability to record transactions in a secure digital environment. As a result, transparency of financial activities is ensured and the risks associated with counterfeit cash, gray turnover and violations in the field of settlements are reduced.

What are the results?

• Although Renminbi Digital does not cover the whole world yet, it can already be used in the countries of Southeast Asia, the Middle East, Russia and a number of CIS countries. In 2025, it had a turnover exceeding the equivalent of $90 billion. This volume demonstrates the gradual transition of global settlements to digital money.

Can Renminbi Digital replace SWIFT?

• So far, the system does not act as a full-fledged analogue of SWIFT. However, this is a practical mechanism for those organizations that seek to settle accounts with Chinese partners without relying on dollar channels. Thanks to this scheme, companies get the opportunity to use their own route of operations based on alternative currency logic.

• In fact, we are talking about a working tool that allows us to build payment processes with China through a different financial circuit, where connection to the traditional dollar infrastructure is not required. This approach gives participants in foreign economic activity additional flexibility and reduces the impact of external currency conditions on their operations.

What is the difference from cryptocurrency?

• Digital currency is a form of national currency issued and guaranteed by the central bank of a country. Unlike cryptocurrencies, which are decentralized and can fluctuate greatly in price, the digital currency has an official legal status, stable value and is a legitimate means of payment.

• Digital currency is intended for use by citizens, companies and government agencies as an alternative to cash and traditional non-cash payments. It can exist, for example, in the form of electronic wallets or account entries, support instant transfers, targeted payments and smart contracts. All this is provided through the infrastructure of the central bank.

How is Russia developing the digital ruble?

• Russia is also introducing its own digital currency. Testing of the digital ruble started in 2023 with the participation of 13 banks and about 30 companies. Since 2024, individuals have joined the pilot, and citizens and businesses from more than 150 localities have opened about 2.5 thousand digital wallets and performed about 100 thousand operations, including more than 63 thousand transfers, about 13 thousand payments for goods and services, and over 17 thousand smart contracts.

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On July 15, 2025, the State Duma adopted a law on the phased introduction of the digital ruble from September 1, 2026. All banks will have to adapt their systems to the universal QR code by this date. Banks with a universal license and their clients with annual revenue over 30 million rubles are required to start processing transactions with digital rubles from September 1, 2027, the rest from September 1, 2028, and retail outlets with annual revenue below 5 million rubles are exempt from mandatory digital ruble acceptance. Digital currency is considered as the next step in the evolution of the payment system and a tool to stimulate innovation.

When writing the material, Izvestia took into account the opinions of:

● Meri Valishvili, Associate Professor of the Department of State and Municipal Finance at Plekhanov Russian University of Economics;

● Anatoly Ivanov, Chief Researcher at the Institute of Digital Technologies of the Financial University under the Government.