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The weaponization of global payment infrastructures: A strategic dilemma

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  • Nölke, Andreas

Abstract

The sixth sanction package of the European Union in the context of the aggression against Ukraine excludes Sberbank, the largest Russian bank, from the SWIFT network. The increasing use of SWIFT as a tool for sanctions stimulates the rollout of alternative payment information systems by the governments of Russia and China. This policy white paper informs about the alternatives at hand, as well as their advantages and disadvantages. Careful reflection about these issues is particularly important, given the call for an "Economic Article 5" tabled for the next NATO meeting. Finally, the white paper highlights the need for institutional reforms, if policymakers decide to return SWIFT to the status of a global public good after the war.

Suggested Citation

  • Nölke, Andreas, 2022. "The weaponization of global payment infrastructures: A strategic dilemma," SAFE White Paper Series 89, Leibniz Institute for Financial Research SAFE.
    • Handle: RePEc:zbw:safewh:89
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    References listed on IDEAS

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    1. Herman Mark Schwartz, 2019. "American hegemony: intellectual property rights, dollar centrality, and infrastructural power," Review of International Political Economy, Taylor & Francis Journals, vol. 26(3), pages 490-519, May.
    2. Linda Weiss & Elizabeth Thurbon, 2018. "Power paradox: how the extension of US infrastructural power abroad diminishes state capacity at home," Review of International Political Economy, Taylor & Francis Journals, vol. 25(6), pages 779-810, November.
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    Keywords

    Ukraine; Russia; Sanctions; SWIFT;
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