Blockchain vs. SWIFT: How global finance is shifting towards a new payments system

Why this topic is strategic (2025)

THE traditional banking system, dominated by SWIFT and the protocols IBAN, is undergoing a major transformation. The emergence of blockchain technologies began to disrupt the international payments, and traditional players such as Western Union are now turning to this technology, which they initially considered a threat. Swiss banks have a strong incentive to adapt!

Why is this change important? By 2025, global finance is reinventing itself with a Increased pressure for faster, cheaper, and more transparent payments. With innovations like the stablecoins and the CBDC (Central Bank Digital Currencies), we are witnessing a revolution in the cross-border money transfers. But how does this development compare to a century-old banking system?

How does the traditional banking system work (SWIFT, IBAN, clearing, processing times, costs)?

THE SWIFT system (Society for Worldwide Interbank Financial Telecommunication) is an international communications network used by thousands of banks to send secure messages regarding money transfers, THE payment instructions and the financial data. In other words, SWIFT does not transfer the money itself, but serves as a secure messenger between financial institutions.

THE transfer time are generally 2 to 5 business days, depending on the destination country. The international transfer fees may vary from 10 to 50 USD, Depending on the bank and the country, this makes international payments possible. slow and expensive.

Although SWIFT has been used for decades and is incredibly reliable, it remains slow and expensive compared to the speed and efficiency of blockchain technology. Furthermore, the risk of double accounting or of Bank fraud remains high in some cases.

What blockchain is changing in international payments

There blockchain introduces a new way of designing transactions. Unlike SWIFT's centralized model, blockchain-based systems are decentralized, which allows for instant transfers with much lower costs.

Speed A transfer based on the blockchain (For example, Bitcoin Or Ethereum) can be done by less than 10 minutes, sometimes instantly.
Cost Transaction fees can be as low as 0.01 USD, depending on the network used.
Transparency All transactions are recorded in a public ledger, which significantly reduces the risk of fraud.
Tokenization Physical assets and currencies can be tokenized, enabling their rapid and secure exchange on blockchain platforms.
Stablecoins : THE stablecoins (For example, USDC, Tether) offer dollar transactions or other currencies without the volatility of traditional cryptocurrencies.

THE stablecoins and the CBDC are now the main drivers of this revolution, because they allow the stability of traditional currencies to be combined with the advantages of blockchain.

SWIFT vs Blockchain: a direct comparison

Criteria	SWIFT	Blockchain
Speed	2 to 5 days	A few minutes to instant
Costs	10–50 USD per transaction	Less than $1 USD (according to the blockchain)
Security	High (encrypted)	Very high (decentralized and encrypted)
Accessibility	Centralized system	A decentralized system accessible to all
Compliance	Subject to strict regulations	More flexible, but with emerging regulations (e.g., KYC/AML)

Why banks resist... but are now integrating blockchain

The Western Union case (from opposition to adoption)

Initially, companies like Western Union And MoneyGram saw the blockchain as a threat : these companies were the leaders in cross-border money transfers, with high fees justified by their distribution network and their role as intermediaries.

However, faced with the rise of cryptocurrencies and the demand for more services faster and cheaper, Western Union made a strategic shift. The company launched a blockchain-based transfer platform in partnership with Ripple in 2023, marking a major turning point in the adoption of blockchain by the sector.

Example: JP Morgan Onyx, RippleNet, USDC, CBDC, etc.

JP Morgan launched Onyx, a division that tests and develops blockchain applications for interbank payments. This initiative is a clear example of the growing influence of blockchain in traditional systems.

Similarly, actors like RippleNet, USDC, And CBD (central bank digital currencies) show that the large financial institutions are starting to integrate blockchain into their payment services, while maintaining the regulatory advantages.

Towards a hybrid future: coexistence or replacement?

The question remains: Can banks and blockchain coexist, or will one replace the other? The future seems to be heading towards a model hybrid, where the two systems will work together to provide the best possible user experience.

THE stablecoins, there asset tokenization, and the CBDC will be the bridges between decentralized systems and traditional financial institutions.

Strategic conclusion: towards finance 2.0

While SWIFT remains a pillar of the global banking infrastructure, blockchain is becoming indispensable for the future of international payments. The speed, costs, transparency and security Offered by blockchain technology, things are gradually changing the rules of the game.

The road to a full adoption The blockchain sector is still fraught with regulatory hurdles and requires adaptation from traditional players, but it is clear that the decentralized technologies are going redefine global finance.

Traditional banks, money transfer institutions, and the large fintech companies will have to adapt or risk being overtaken by the technological revolution that is coming.