Global Financial Infrastructure Fragmenting Amid Geopolitical Pressure
- Reports
- 3
- Developments
- 4
- Repetition
- 67%
New informationRepeats or wire copies
What happened
The global transaction landscape is reportedly shifting into multiple competing systems. Pyotr Fradkov, chairman of Russia's Promsvyazbank (PSB), stated that this shift is driven by countries seeking to shield international trade from foreign pressure, which he characterized as a tool of 'new warfare.' Separately, in New Zealand, the Reserve Bank has been tasked by the Minister of Finance to lead a strategy for payments modernization due to the country's retail payments system being considered outdated and lacking international best practices.
Why it matters
The fragmentation is seen as a response to geopolitical pressures, including unprecedented US and EU sanctions against Russia. While countries attempt to reduce dependence on the dollar, reliance on foreign financial infrastructure remains a vulnerability. The modernization of payment systems is critical for national productivity and economic resilience.
Geopolitical pressure and sanctions accelerate shift affecting competing national systems and the global payment system.
How it developed
Newest first. Tap a step to see who reported it.- New payment instruments like stablecoins and CBDCs are gaining market share while facing pressure from the established global payments industry.Sub-event
- Global dollar transactions utilize correspondent banking links.Sub-event
- The Swiss National Bank is involved in the development of a new payment system.Sub-event
Global payment systems are fragmenting into competing national systems.1 source