Exploring Alternatives to SWIFT: How Global South Nations and BRICS Are Navigating Financial Sanctions

Amid ongoing international conflicts and the strategic use of U.S. financial sanctions involving the dollar, countries across the Global South are increasingly examining ways to bypass the universally accepted Society for Worldwide Interbank Financial Telecommunication (SWIFT) system for cross-border payments. The New Delhi Declaration, emerging from a recent BRICS Summit in the Indian capital, formally resolved to boost intra-bloc trade and encourage settlements using national currencies.

Ahead of the summit, Reuters reported that India planned to advocate for linking central bank digital currencies (CBDCs) to facilitate cross-border transactions among BRICS members, despite facing technological and political obstacles. While this proposal did not ultimately feature in the final declaration, related financial discussions underscored a growing momentum toward alternative payment rails. On the eve of the summit, Sberbank CEO Herman Gref highlighted significant opportunities for India-Russia bilateral trade settlements via CBDCs, describing the method as highly efficient.

Several alternative networks have emerged globally to challenge or supplement the Belgium-based SWIFT system. Project mBridge involves a multi-central bank arrangement featuring the Bank of Thailand, the Central Bank of the United Arab Emirates, the People’s Bank of China’s Digital Currency Institute, the Hong Kong Monetary Authority, and the Saudi Central Bank. Designed as a cross-bloc multi-CBDC platform operating without Western banks, mBridge achieved minimum viability status in 2024 using a custom-built blockchain known as the mBridge Ledger.

However, the platform's trajectory has faced external scrutiny. The Bank for International Settlements (BIS), which supported mBridge from its inception in 2019, exited the project in October 2024. Media reports suggested the withdrawal followed concerns that mBridge could serve as a mechanism to circumvent sanctions against Russia. Publications such as Forbes later noted that mBridge functioned as a renminbi-denominated wholesale settlement rail for trade between China and the Gulf region, operating entirely outside the traditional dollar correspondent network.

Another prominent alternative is China's Cross-Border Interbank Payment System (CIPS), launched by the People’s Bank of China in 2015 to internationalise the yuan. CIPS enables global financial institutions to clear cross-border yuan transactions directly onshore. According to trade economist Biswajit Dhar, the inclusion of the renminbi in the International Monetary Fund's Special Drawing Right basket has broadened the acceptance of CIPS, which now has participants spanning over 120 countries, including every BRICS member except India.

Data from a South China Morning Post report indicates that CIPS processed an average of 679.8 billion yuan daily in 2025—roughly $98.7 billion—though this remains significantly smaller than established Western-centric equivalents like the Clearing House Interbank Payments System (CHIPS). While CIPS has expanded its footprint across trading partners in Asia and Africa, Beijing is reportedly working to develop it into a globally compliant multi-currency platform.

Russia has similarly pursued financial autonomy through its System for Transfer of Financial Messages (SPFS), established in 2014 to withstand Western restrictions. The network proved vital after Russian financial institutions were barred from SWIFT in 2022. Official figures from the Central Bank of Russia indicate that the SPFS expanded rapidly through 2023, adding 50 new entities to reach a total of 440 participants, including over 100 non-residents. Furthermore, the SPFS has established connectivity with Iran’s local interbank telecom system, SEPAM, enabling Russian and Iranian banking entities to communicate and transact.

Bilateral mechanisms have also deepened outside traditional global frameworks. India and Russia have established a functioning payments architecture utilizing rupees and roubles, which currently account for 96% of bilateral commerce, according to Ivan Nosov, head of Sberbank in India. Official figures show that 22 Russian banks, including Sberbank, alongside 17 Indian banks, currently service this bilateral trade route. Meanwhile, the broader push for alternative financial infrastructure continues to navigate a complex landscape shaped by shifting geopolitical alignments and regulatory pressures.