Why Germany must join CIPS?

No one can challenge SWIFT. It is the most ubiquitous messaging system globally. In 2025 alone SWIFT recorded the highest volume of daily messages over 68 million in a single day. Average daily messages transferred last year amounted to about 53 million. But there emerges a new challenger from the Far East: CIPS. So far Germany has ignored its presence. Now it is time to join!

The initials CIPS represents Cross-Border Interbank Payment System. It serves as a clearing house settling funds directly, especially for Yuan transactions. CIPS and SWIFT are not mutually exclusive. These are of complementary nature. One can join either or both. Both SWIFT & CIPS adopts ISO 20022 standards and CIPS frequently uses SWIFT for messaging in languages such as English, French etc.

The major difference is, while SWIFT is under the sway of Western nations, especially America, CIPS has autonomy. Moreover, CIPS has provided an alternative for countries looking forward to avoid US sanctions. CIPS is indispensable for parties dealing directly with Chinese buyers & sellers especially in case of large value transactions in Yuan.

Primarily owned and backed by Chinese state entity, the People’s Bank of China (PBOC) whose portfolio is the largest is accompanied by a cocktail of other Chinese state-owned banks. Many other outside participants include world renown banking houses such as HSBC, Standard Chartered,, DBS Bank, Citigroup, ANZ Banking Group, and BNP Paribas. Right now it has more than 172 direct participants and well over 1,400 indirect participants across 109 countries.

The trouble with SWIFT is not her professional standing but the way Western Nations interfere in her day-to-day operations. US, UK & EU Trio shaming her neutrality imposes targeted sanctions against countries such as Iran & Russia and blocking firms from these countries out of SWIFT switchboard.   In sum SWIFT has become a ploy in the geoeconomics power play.

In contrast, CIPS offers strict neutrality, faster Yuan payments, lower cost of operations, more than anything else, a true alternative to the capitalist cabal controlled SWIFT mechanism. Major plus of course is avoidance of US-initiated mischief.

Potential benefits to Germany

Car giants such as Volkswagen, Mercedes Benz and BMW who have extensive deals in China along with chemical giants BASF, and polymer boss Covestro and specialty chemicals chief Lanxess who are bent upon expanding their business connections in China would be pleased to see Germany joining CIPS.

Not to forget banks, I feel both Deutshe Bank AG and Commerz Bank AG would be delighted to become direct participants in CIPS. For them here is this tip: in 2025 SWIFT turnover was around USD 65 Trillion whereas CIPS is not far away at USD 26 Trillion equivalent in Yuan and other currencies. By the way, CIPS started in 2015 whereas SWIFT is operating since 1973.

Navigating strategy amid geoeconomics impel Germany to join CIPS right away without losing any time and continue in SWIFT as usual.

 

Cheers!

 

Muthu Ashraff Rajulu

Strategy Adviser

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Strategy Adviser