Chinese yuan playing ‘complementary’ role in interbank settlement, but CIPS won’t rival Swift, says global central bank boss
- China’s clearing and settlement service is no substitute for the global payment system Swift, says Agustin Carstens of Bank of International Settlements
- Digital central bank currencies will enhance efficiency but must be developed with care, while cryptocurrency is ‘not money’ and must be regulated, he says
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BIS head Carstens: China’s clearing and settlement service is no substitute for global Swift system
As the yuan is now the world’s fifth most used currency for payments by value, the Chinese central bank clearing system is playing an important complementary role in the global payment system, according to the boss of the global central bank.
“In this space, it is not probably adequate to think about substitutes,” Carstens said. “It is not a race. Swift covers some forms of payments initiated by different types of intermediaries, while other systems could cover others. The important thing here is the complementarity of the different payment systems.
“There are many needs among societies, and we need to let the different solutions flourish.”
