Banning the use of swift, Russia faces really strong sanctions. On February 27, the United States, the European Union, the United Kingdom and Canada issued a joint statement, announcing that Russia was prohibited from using the international settlement system of the global Interbank Financial Telecommunications Association (Swift), covering Russian financial institutions that had previously been sanctioned.
Swift: core infrastructure for international capital transactions. At present, 11000 financial institutions are connected on swift, covering 200 regions around the world. In 2020, the amount of financial transaction information will reach 9.5 billion. Banning swift is a really powerful economic sanction. In essence, swift (Global Interbank Financial Telecommunication Association) is the mainstream channel for the transmission of international capital transaction information and the core infrastructure for the current international transaction settlement. Once a country is kicked out of swift, it will seriously affect the transaction and settlement of international trade, It has a greater impact on countries such as Russia, which take energy exports as an important source of income.
Swift system is difficult to shake in the short term, but it is urgent to seek alternatives. Swift was founded in the 1970s. It serves more than 10000 financial institutions, covers more than 200 regions around the world, and constructs its solid ecological barrier with a huge amount of international financial transactions every day. The core position of the US dollar as an “international currency” behind it is the fundamental reason why swift is difficult to be shaken. Although the current international transaction clearing system is difficult to change, swift sanctions have become the “sword of Damocles” hanging on major economies. Only by establishing alternative international transaction information channels and payment and settlement facilities and establishing more bilateral currency swap systems can we ensure financial security and independence.
Why does digital RMB have advantages in cross-border payment? Low transaction cost. Due to the number of intermediary institutions such as agent banks, cross-border payment needs to experience multi account and multi communication jump, and the number of intermediaries is expected to be reduced by several currencies; It is expected to conduct real-time cross-border transactions, reduce the number of intermediaries, and help speed up the timeliness of cross-border payment transactions; With the improvement of electronic payment infrastructure, China currently has the world’s leading ecological construction in the field of electronic payment, which is expected to be promoted more quickly and at a lower cost in the follow-up promotion.
Digital RMB and RMB go to sea complement each other and promote or re welcome catalysis. According to the white paper on the research and development process of China’s digital RMB, the people’s Bank of China actively participates in multilateral exchanges among international organizations such as the Financial Stability Board (FSB), the bank for International Settlements (BIS), the International Monetary Fund (IMF) and the World Bank (WB) to jointly build an international standard system; The Institute has signed a memorandum of cooperation with the Hong Kong Monetary Authority and joined the multi currency legal digital currency bridge project led by the innovation center of the bank for International Settlements (bisih).
Investment suggestion: Digital RMB will be promoted again, and it is expected to further accelerate the popularization of digital RMB through policies and other means in the future. At the investment level, combined with the catalysis of digital RMB, select companies with dual inflection points in the industry fundamentals and the company itself: bank it suggests paying attention to Yusys Technologies Co.Ltd(300674) , Global Infotech Co.Ltd(300465) , Shenzhen Sunline Tech Co.Ltd(300348) , Digital China Information Service Company Ltd(000555) , Tansun Technology Co.Ltd(300872) , Northking Information Technology Co.Ltd(002987) , Feitian Technologies Co.Ltd(300386) , etc; Acquirer and hardware manufacturer suggest paying attention to Newland Digital Technology Co.Ltd(000997) , Xgd Inc(300130) , Lakala Payment Co.Ltd(300773) , Grg Banking Equipment Co.Ltd(002152) ; It is suggested to pay attention to Beijing Infosec Technologies Co.Ltd(688201) , Westone Information Industry Inc(002268) , etc. in encryption management.
Risk tip: the promotion progress of digital currency is less than expected; The continuous rise of labor costs leads to the decline of profits; The promotion of intelligent terminals is less than expected.
