SWIFT vs CBDC Platforms: How the Architecture of Global Payments Is Changing

For decades, international payments have relied on a single backbone. Banks, currencies, correspondent accounts - all connected through SWIFT, the invisible infrastructure of the global financial system.

Today, however, a new generation of technologies is emerging: CBDC platforms - digital currencies issued by central banks and multilateral payment systems such as Project mBridge. These platforms do more than speed up transfers; they fundamentally change how money moves across borders.

This is not about the immediate replacement of SWIFT, but about a structural shift that is already reshaping Europe, global finance, and cross-border business.

What SWIFT Is — and What It Is Not

SWIFT is often misunderstood. It is not a payment system in the traditional sense. It is a financial messaging network that allows banks to communicate payment instructions securely.

SWIFT:

• Does not hold funds,

• Does not move money,

• Does not guarantee settlement speed or cost.

Actual settlement occurs through:

• Correspondent banking networks,

• Clearing banks,

• And often via the US dollar and the US financial system.

Source (SWIFT):https://www.swift.com/about-us

Structural Limits of the SWIFT Model

Over time, this architecture has revealed several systemic limitations:

• Slow settlement — payments can take days

• High costs — multiple intermediaries add fees

• Dollar dependency — even for non-US transactions

• Geopolitical exposure — access can be restricted

These constraints are a major reason why central banks are now exploring alternatives.

Source (Financial Times)

What Are CBDC Platforms?

CBDC (Central Bank Digital Currency) is a digital form of a national currency issued directly by a central bank.

CBDC platforms go further:

• They connect multiple countries,

• Enable direct cross-border settlement,

• Remove long chains of correspondent banks.

Many of these initiatives are developed with the involvement of the Bank for International Settlements and national central banks. Source (BIS)

The Core Difference: Messages vs Money

Feature	SWIFT	CBDC Platforms
What is exchanged	Messages	Money itself
Settlement	Outside the system	Inside the platform
Speed	Hours / days	Seconds
Intermediaries	Many	Few or none
Dollar dependence	High	Low or optional
Geopolitical exposure	Significant	Architecture-dependent

Why Central Banks Are Building CBDC Alternatives

1. Financial sovereignty. Governments seek to reduce reliance on a single infrastructure and currency.

2. Systemic resilience. Alternative payment rails increase stability during crises.

3. Cost and efficiency. CBDC platforms promise faster, cheaper cross-border payments.

4. Direct oversight. Central banks gain real-time visibility and control over settlement.

Source (IMF)

Europe Between SWIFT and CBDC Platforms

Europe faces a particularly strategic dilemma.

On the one hand:

• SWIFT is historically linked to Europe,

• Deeply embedded in European banking systems.

On the other:

• Europe does not control the global dollar infrastructure,

• And is increasingly focused on payment sovereignty.

The European Central Bank has made clear that the digital euro is not designed to replace cash, but to ensure Europe retains control over its payment infrastructure in a fragmented world. Source (ECB)

Will CBDC Platforms Replace SWIFT?

The short answer: no — not in the near term

A more realistic scenario is:

• SWIFT remains the global messaging “language”,

• CBDC platforms operate as parallel settlement layers,

• the world evolves toward a multi-rail payment system.

This hybrid model is already visible in BIS pilot projects.

What This Means for Businesses and Individuals

For businesses:

• Potentially faster and cheaper international payments,

• Higher compliance and it requirements,

• Greater importance of payment infrastructure strategy.

For individuals:

• Gradual introduction of digital currencies,

• More transparency and control by central banks,

• Changing roles for commercial banks.

Conclusion

SWIFT represents a legacy system that still works.CBDC platforms represent a future infrastructure still under construction.

The global financial system is not moving toward a single replacement, but toward a new architecture where:

• Payment rails are multiple,

• Money is increasingly digital,

• Financial sovereignty becomes a strategic asset.

For Europe - and for countries like Portugal - the challenge is not to resist this shift, but to actively shape it.

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