National Bank of Georgia Clarifies CIPS Role Amidst EU Sanctions Talk: A Supplement, Not a SWIFT Alternative

Natia Turnava, Fu Huan.

Tbilisi, Georgia – The National Bank of Georgia (NBG) has issued a definitive statement regarding its discussions on cooperation with China's Cross-Border Interbank Payment System (CIPS), emphasizing that the system is considered a "supplement" and "not an alternative to the international SWIFT system." This clarification comes amidst recent calls from the European Parliament to potentially disconnect Georgia from SWIFT.

Discussions between the NBG and CIPS gained public attention following a Facebook post by former central bank president Roman Gotsiridze, who claimed that the head of the Chinese payment system had visited the Georgian National Bank and referred to CIPS as a SWIFT alternative. Gotsiridze highlighted that CIPS primarily processes payments in Chinese yuan and is controlled by the Chinese government.

CIPS, launched in 2015 by the People's Bank of China, was designed to simplify yuan settlements and serve as an alternative to Western systems like SWIFT, aiming to reduce dependence on SWIFT, promote the Chinese yuan globally, and ensure secure payments among BRICS countries, Asia, and other Chinese partners.

Adding to the complexity, in early July, the European Parliament adopted a resolution on Georgia. This resolution condemned pressure on civil society, political opposition, and independent media, and notably included a call for EU member states to impose personal sanctions on those responsible, alongside a recommendation to disconnect Georgia from SWIFT and impose sectoral sanctions.

In its statement, the National Bank of Georgia firmly dismissed "speculative claims that CIPS is an alternative to SWIFT," labeling any such suggestions as "completely false" and "disinformation." The NBG clarified that cooperation with CIPS is viewed as "important for the country," creating "new opportunities for banks and improves efficiency for companies involved in trade between Georgia and China."

The NBG detailed the benefits of CIPS, stating that it "enables direct transactions in yuan, which reduces payment costs, makes currency exchange between Georgian and Chinese banks more transparent and economically efficient, and ensures a more stable and reliable payment process." Given China's position as one of Georgia's top trading partners, this additional channel for yuan exchange is expected to contribute to economic growth.

The NBG highlighted the global presence of CIPS, noting that as of June 2025, its network includes over 1,890 financial institutions from 90 countries, with many using both SWIFT and CIPS alongside other regional systems. This includes 261 institutions in Europe, 34 in North America, 34 in South America, and 22 in Australia/Oceania.

Crucially, the National Bank of Georgia reiterated its strong and strategic relationship with SWIFT. The statement affirmed, "Our relationship with SWIFT is strategic and continues to deepen." The NBG is actively leading the rollout of the new ISO20022 SWIFT format within the Georgian banking system and participates in pilot projects for new SWIFT products. This partnership, according to the NBG, is "long-term and will remain a core part of Georgia’s integration into global financial infrastructure."

In conclusion, the National Bank of Georgia positions CIPS not as a replacement, but as a mechanism for regional diversification and an additional tool to facilitate trade with China, while unequivocally affirming its enduring commitment to SWIFT as a cornerstone of Georgia's global financial integration.