Not So SWIFT: An In-Depth Analysis of Economic Alternatives for Sanctioned States

Through recent decades, Iran has consistently been faced with economic sanctions by the United States. Due to the hegemony the United States has over international monetary systems, sanctions can be detrimental. This was displayed in 2012 when Iran was sanctioned by The Society for Worldwide Interbank Telecommunication (SWIFT), an interbank messaging platform which can be influenced by the United States. SWIFT is responsible for facilitating $5 trillion USD in settlements daily. As a result, the Iranian economy suffered greatly as they could not facilitate their oil sales with international partners without SWIFT. This thesis seeks to find alternative payment and messaging platforms which may compete with SWIFT and assist in sanctioned countries to avoid the current hegemonic nature of payment and messaging platforms. In finding alternatives, two stand at the forefront of this economic discourse for sanctioned states. One being the Cross-Border Interbank Payment System which was...Show moreThrough recent decades, Iran has consistently been faced with economic sanctions by the United States. Due to the hegemony the United States has over international monetary systems, sanctions can be detrimental. This was displayed in 2012 when Iran was sanctioned by The Society for Worldwide Interbank Telecommunication (SWIFT), an interbank messaging platform which can be influenced by the United States. SWIFT is responsible for facilitating $5 trillion USD in settlements daily. As a result, the Iranian economy suffered greatly as they could not facilitate their oil sales with international partners without SWIFT. This thesis seeks to find alternative payment and messaging platforms which may compete with SWIFT and assist in sanctioned countries to avoid the current hegemonic nature of payment and messaging platforms. In finding alternatives, two stand at the forefront of this economic discourse for sanctioned states. One being the Cross-Border Interbank Payment System which was established as a result of the internationalization of the RMB. And the rise of RippleNet, a blockchain based messaging and payment platform which has emerged due to the technological advances in the finance industry. In doing so, the paper analyzes shifts in global finance and its subsequent impact on sanctioned countries.Show less

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Not So SWIFT: An In-Depth Analysis of Economic Alternatives for Sanctioned States