Should Irish banks have the ability/infrastructure to offer alternative payment options to swift?

realitykeeper

Given the rise of the Brics block and the number of countries gravitating toward Brics membership, wouldn`t it be a wise precaution and a sensible business strategy for Irish banks to have in place the means to use/offer alternative payments systems to Swift? To be clear, I am not suggesting we replace or substitute Swift with another payments system. It`s just that we don`t know if the world will split into east and west or into the global north and global south. And if it does, how many of these countries will we still be able to trade with. Much may depend on who gets sanctioned by the US, specifically with respect to the weaponization of the swift payment system and also the extent to which the EU goes along with the US in terms of who the EU is prepared to trade with.

Ideologically, the west differs from much of the rest of the world but shouldn`t we at least keep some options open and maximise our banking capabilities just in case we might need them? After all, the EU still buys a lot of Russian oil (just not directly) so necessity overrides ideological differences. So if the EU is prepared to go against it`s principles, shouldn`t Ireland have the wherewithal/means/capility/infrastructure to do likewise?

Needless to say, alternative Western payment systems are not what I am talking about. Shouldn`t Irish banks have the ability to offer the Chinese, Russian, Indian and other non-western payment systems, just in case? Examples are: China`s Cross-Border Interbank payment system (CBIP), India`s Structured Financial Management System SFMS), Russia`s SPSF and Brazil`s PIX.

Mick Tator

There are more than a few platitudes and some rather strange assertions in that post. All you are missing is support for crypto!

Have you heard of sanctions? Do you really think that Ireland, heavily dependent on EU membership and FDI,  would dump its links with the developed world in favor of dealing with Russia? Or China, should it have a pop at Taiwan? Even ignoring all that, do you have any moral compass?

Gloomtastic!

Is it too early for popcorn? 😋

realitykeeper

https://www.boards.ie/discussion/comment/121573231#Comment_121573231

The EU makes a joke of it's own sanctions by importing Russian oil that has been refined in India. If we in the EU are going to buy Russian oil, it would make more sense environmentally and economically to import it directly and refine it ourselves.

If the EU is so flippant with it's own sanctions, would they have an issue with Ireland having alternative to swift capability? They may not care or they may continue to prioritise practicalities over sanctions/principles. Other EU countries may go ahead and acquire these payment systems. I did not suggest Ireland should go against the EU on sanctions because that is a separate argument as are the sanctions themselves. You also assume I would have an issue with China ,"having a pop" at Taiwan. Taiwan is part of China so that would be a domestic matter.

As for having a moral compass I would wager mine would leave yours in the penny place.

erlichbachman

https://www.boards.ie/discussion/comment/121573231#Comment_121573231

You need to put morals aside chief when it comes to survival, do you really believe that any state will uphold sanctions if its own people will be the ones suffering, this is what causes uprisings. The term sanction means less and less as time goes on and someday in the near future it will mean nothing at all as the big players notice that stick they are waving is no longer useful. Alternative methods need to be found to disincentivize Russia and China.

realitykeeper

https://www.boards.ie/discussion/comment/121574010#Comment_121574010

We could consider Russian and Chinese perspectives.

Mick Tator

After bans in AH on similar threads you two need to do more homework before posting in this forum. Clearly you have no idea od what is going on in Financial Regulation both in the EU and US.

You might start by looking at what is happening to Russian oil exports https://energyandcleanair.org/publication/one-year-of-sanctions-russias-oil-export-revenues-cut-by-eur-34-bn/

Ireland is heavily reliant on oil imports because of theGreen agenda and its head in the sand approach on a LNG terminal and nuclear. India has its own agenda and is screwing Russia on price and terms and geopolitics dictate that we must keep the buffer between us and China on our side.

All of which has nothing to do with payments mechanisms.

realitykeeper

https://www.boards.ie/discussion/comment/121574262#Comment_121574262

Right. Nothing to do with payment mechanisms. So why post something that has nothing to do with this payment mechanisms thread.

Hawkeye123

I think non western payment systems are a good idea.

onedmc

There are loads of alternatives to SWIFT, most countries have their own, ABA, BACS/CHAPS, CHIPS and I'm sure one for each of the next 20 letters. Some are commerical others owned by associations. SWIFT is just the biggest and broadest not just simple payment but trade finance formats as well.

lucyhere

https://www.boards.ie/discussion/comment/121573446#Comment_121573446

Good one

Jim2007

https://www.boards.ie/discussion/comment/121574712#Comment_121574712

Your post demonstrates a complete lack of understanding of banking and the payment system, so you are well matched. Keep flipping those burgers as they say.

dubstepper

https://www.boards.ie/discussion/2058329627/should-irish-banks-have-the-ability-infrastructure-to-offer-alternative-payment-options-to-swift

It would be a pointless waste of time and effort. We can pay most of these countries using swift. As someone mentioned swift offers standard messaging which banks need to be able to send and receive. To do this comes with huge systems costs. Also would you be presuming that we would be operating outside of western sanctions in dealing with say Iran or Russia?