Episode #12
CIPS Explained: How China Is Building an Alternative Global Payment System
China is building a financial infrastructure that could reshape the way international payments are made.At the centre of this effort is **CIPS — the Cross-Border Interbank Payment System**, China’s own international RMB payment and settlement network. But what exactly is CIPS, how does it differ from SWIFT, and could it eventually reduce the dominance of the US dollar in global finance?In this podcast, we explore:• What CIPS is and how it works• How CIPS differs from SWIFT• Why China is developing its own cross-border payment infrastructure• The role of the Chinese yuan in international trade• How sanctions and geopolitical tensions have increased interest in alternative payment systems• CIPS, de-dollarisation, and the changing global financial system• The limitations and challenges facing CIPS• Three possible futures for the international monetary system
