Chinese banks urged to switch from SWIFT to domestic financial network amid looming US sanctions over Hong Kong

The Bank of China

The Bank of China says the country should prepare for potential US sanctions by increasing use of its own financial messaging network for cross-border transactions on the mainland, Hong Kong and Macau.

According to the report, greater use of the Cross-Border Interbank Payment System (CIPS) instead of the Belgium-based SWIFT system would also reduce exposure of China’s global payments data to the United States. Chinese state lenders have reportedly been bracing for potential US sanctions for serving officials who implement the new national security for Hong Kong.

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