Why 180+ Countries Are Now Plugged Into China’s Global Payment System

July 23, 2025

There’s a new global financial infrastructure quietly gaining ground — and it doesn’t depend on the U.S. dollar.

It’s called CIPS, short for the Cross-Border Interbank Payment System, and as of this year, it connects over 180 countries and more than 1,600 banks worldwide.

If that sounds like a rival to SWIFT — it is.

But the implications go far beyond who processes the payment message.

What CIPS Actually Does

CIPS was developed by China’s central bank to facilitate yuan-denominated trade and payments across borders — especially in regions looking to reduce reliance on the U.S. financial system.

Unlike SWIFT (which simply sends payment instructions), CIPS can also settle transactions directly in RMB.

That makes it a powerful tool for countries facing sanctions, navigating tariffs, or simply hedging against the risks of being tied too closely to U.S.-dominated infrastructure.

Why This Expansion Matters

CIPS now has:

  • 180+ participating countries

  • 1,683 direct and indirect banks

  • Nearly ¥500 billion in daily transaction volume

  • Users in Europe, the Middle East, Southeast Asia, Africa, and Latin America

The goal isn’t to destroy SWIFT or the dollar overnight — it’s to build a parallel system, a financial “Plan B” for global trade partners.

And the motivation is clear:

  • After the U.S. froze $300B in Russian reserves, central banks worldwide took notice.

  • China’s policy banks and state firms are now being urged to settle trade in RMB, via CIPS.

  • BRICS+ nations are actively working to settle more transactions outside the dollar.

This isn’t theory. It’s practice — happening now.

What to Watch Next

If you want a clearer picture of where this is going, pay attention to:

  • Growth in RMB trade settlements, especially for energy and commodities

  • Further interoperability between CIPS and other systems (e.g., SWIFT’s ISO 20022)

  • Expansion of CIPS usage in Africa, the Middle East, and Southeast Asia

  • Changes to China’s capital controls (still the biggest barrier to real RMB reserve status)

China’s not asking the world to ditch the dollar — it’s giving them a working alternative.

And with 180+ countries already plugged into that system, the shift is no longer theoretical. It’s happening.

Quietly. But quickly.

— DOTD