Beyond the Dollar: Alternative Payment Systems Guide
Key Takeaways
- China’s CIPS processed RMB 175.49 trillion ($24.47T) in 2024, up 42.6% year-on-year.
- SWIFT’s ISO 20022 migration completed November 2025 - 97% of cross-border payments now use the new MX format.
- B2B stablecoin payments surged from under $100M monthly in early 2023 to over $6B monthly by mid-2025.
- Total stablecoin transaction volume reached $33 trillion in 2025, a 72% increase from 2024.
- Alternative payment rails are supplementing, not replacing, dollar-denominated infrastructure.
What Is De-Dollarization?
De-dollarization is the process of reducing reliance on the US dollar as the dominant currency in international finance. It can take various forms: adopting alternative currencies for trade settlement, building new payment infrastructure, developing digital currency systems, and creating financial institutions that operate outside dollar-denominated networks.
This process has accelerated significantly since 2023, driven by geopolitical fragmentation, the weaponisation of financial infrastructure through sanctions, the rise of digital payment systems in emerging economies, and a pragmatic desire among trading partners to reduce single-currency dependency. What was once theoretical is now measurable.
The De-dollarisation Landscape in 2026
Several parallel developments have reshaped cross-border payment infrastructure:
- The expansion of cross-border payment systems that operate independently of SWIFT, most notably CIPS (China) and SPFS (Russia), with BRICS Pay in pilot development targeting 2030.
- The adoption of digital currencies and stablecoins as practical settlement tools, particularly for cross-border B2B payments where speed and cost advantages are most pronounced.
- The promotion of bilateral and regional currency settlement agreements, with over 90% of Russia-China trade now settled in local currencies and India expanding rupee trade agreements across the Global South.
- The completion of SWIFT’s own ISO 20022 migration in November 2025, modernising the incumbent system’s data standards to compete with newer alternatives.
One notable failure illustrates the difficulty of building alternative payment infrastructure. INSTEX, the European special-purpose vehicle created in 2019 to facilitate trade with Iran outside US sanctions, completed only a single transaction before its ten shareholder states voted to liquidate it in March 2023. Political obstruction and insufficient commercial incentive proved fatal.
Alternative Payment Systems: Global Comparison
| Payment System | Operator | Launch | Coverage (2025) | 2024 Volume | SWIFT Alternative? | Source |
|---|---|---|---|---|---|---|
| CIPS | China (PBoC) | 2015 | 100+ countries, 1,573+ indirect participants | RMB 175.49T ($24.47T) | Yes | PBoC |
| SPFS | Russia (CBR) | 2014 | 24 countries, 177 foreign participants | Not disclosed | Yes (limited) | Bank of Russia |
| UPI | India (NPCI) | 2016 | India + 8 countries (expanding) | 16.6B transactions (domestic) | No (domestic focus) | NPCI |
| Pix | Brazil (BCB) | 2020 | Brazil (150M+ users) | 63.8B transactions (domestic) | No (domestic) | Banco Central do Brasil |
| BRICS Pay | BRICS+ | Pilot | BRICS+ nations (pilot phase) | N/A | Yes (planned, target 2030) | BRICS Summit communiques |
Sources: People’s Bank of China (CIPS 2024 annual report), Bank of Russia, NPCI International, Banco Central do Brasil. Data current as of early 2026.
CIPS vs SWIFT: How Do They Compare?
| Dimension | CIPS (China) | SWIFT (Belgium) |
|---|---|---|
| Transaction volume (2024) | RMB 175.49T ($24.47T), 8.22M transactions | ~$150T annually, 11.9B messages (2023) |
| Network coverage | 100+ countries, 1,573 indirect participants | 200+ countries, 11,500+ institutions |
| Primary currency | Chinese yuan (RMB) | Multi-currency (USD dominant) |
| Political independence | Operated by PBoC; not subject to Western sanctions | Belgium-based; has complied with US/EU sanctions (e.g., Russia disconnection 2022) |
| Messaging dependency | Still relies on SWIFT for ~80% of messaging | Self-contained messaging infrastructure |
| ISO 20022 | Native support | Migrated November 2025 (97% adoption) |
The two systems are not direct replacements. CIPS provides a parallel rail for yuan-denominated settlement and a sanctions-resilient alternative, while SWIFT remains the dominant global messaging network. For institutions seeking optionality, the strategic value is access to both.
CIPS - The Quiet Giant
The most consequential development in alternative payment infrastructure is the growth of China’s Cross-Border Interbank Payment System. In 2024, CIPS processed 8.22 million transactions totalling RMB 175.49 trillion ($24.47 trillion) - increases of 24.25% and 42.60% year-on-year respectively. By mid-2025, daily clearing volumes exceeded RMB 750 billion across approximately 23,000 daily transactions.
To put this in perspective, CIPS has grown 36-fold from its initial RMB 4.8 trillion in 2015. The system now connects 193 direct participants and 1,573 indirect participants across more than 100 countries. In December 2025, Singapore’s three major banks joined CIPS, signalling the system’s expansion beyond politically motivated adoption into commercially driven participation.
CIPS does not need to replace SWIFT to be strategically significant. It provides a parallel rail that reduces single-point-of-failure risk for countries and institutions that want optionality in their payment infrastructure.
The ISO 20022 Inflection Point
SWIFT itself underwent its most significant infrastructure upgrade in decades. On 22 November 2025, ISO 20022 became the exclusive standard for cross-border payments and reporting, replacing legacy MT message formats. Within two days, 97% of payment instructions sent through SWIFT used the new MX format.
The migration matters because ISO 20022 carries structured, standardised data that enables faster settlement, reduced manual checking, easier fraud detection, and richer remittance information. It narrows one of the key advantages that newer systems like CIPS had over legacy SWIFT messaging.
For platforms operating across multiple payment rails, ISO 20022 compatibility is now table stakes.
Stablecoins Enter B2B Payments
Perhaps the most unexpected development in payment diversification has been the emergence of stablecoins as practical B2B settlement tools. Total stablecoin transaction volume reached $33 trillion in 2025 - a 72% increase from 2024 - with USDC accounting for $18.3 trillion and USDT recording $13.3 trillion.
Stablecoin Cross-Border Payment Growth
| Metric | 2023 | 2025 | Growth | Source |
|---|---|---|---|---|
| Total stablecoin transactions | ~$19T | $33T | 72% YoY | Bloomberg |
| B2B monthly volume | <$100M | $6B+ | 60x | FXC Intelligence |
| USDC annual volume | N/A | $18.3T | - | Circle |
| USDT annual volume | N/A | $13.3T | - | Tether |
| Stablecoins pegged to USD | >90% | >90% | Stable | Artemis Analytics |
Sources: Bloomberg (Jan 2026), FXC Intelligence Stablecoin Report 2025, Artemis Analytics
B2B stablecoin payments surged from under $100 million monthly in early 2023 to over $6 billion by mid-2025 (FXC Intelligence). Cross-border transfers emerged as the most mature use case, with businesses using stablecoins to settle invoices, manage international payroll, and rebalance treasury positions in minutes rather than days.
Ironically, over 90% of all stablecoins are pegged to the US dollar. De-dollarisation in payment rails does not necessarily mean de-dollarisation in unit of account - it means disintermediation of dollar-denominated banking infrastructure.
Discover how Aerapass enables seamless cross-border payments in local currencies
What This Means for Cross-Border Finance
De-dollarisation is not a zero-sum game. The emerging reality is a multi-rail world where SWIFT, CIPS, stablecoin networks, and domestic instant payment systems coexist and occasionally interoperate. The US dollar’s share of global reserves has declined gradually - from 72% in 2000 to approximately 58% in 2024 according to IMF COFER data - but it remains dominant by a wide margin.
For businesses and financial institutions operating across borders, the strategic imperative is optionality: the ability to settle in multiple currencies, across multiple rails, with compliance infrastructure that adapts to jurisdictional requirements.
Aerapass continues to adapt its payment and settlement infrastructure to this multi-rail reality. The platform enables transactions in various fiat currencies and integrates digital assets including stablecoins and asset-backed tokens for settlement purposes. These capabilities, combined with cross-border payment solutions across 120+ countries, position the platform for a world where no single payment rail dominates.
Frequently Asked Questions
Will the US Dollar Lose Its Reserve Currency Status?
The dollar’s share of global reserves has declined gradually - from 72% in 2001 to approximately 58% in 2024 (IMF COFER data) - but it remains dominant by a wide margin. No single currency is positioned to replace it. The euro holds roughly 20%, the yen approximately 6%, and the yuan just 2.2% despite China’s economic weight. At the current rate of decline (~0.6% per year), reserve parity with other currencies would take decades. The more likely outcome is a multi-currency reserve system where the dollar remains the largest single component but no longer holds majority share.
What Are the Main Alternatives to SWIFT for Cross-Border Payments?
The primary alternatives are CIPS (China, $24.47T processed in 2024), SPFS (Russia, 24 countries connected), and emerging systems like BRICS Pay (pilot phase, targeting 2030). India’s UPI has expanded cross-border to 8 countries, and Brazil’s Pix serves 150M+ domestic users. Stablecoins have also emerged as practical settlement tools, with B2B volumes exceeding $6B monthly by mid-2025. None of these individually replaces SWIFT, but together they create a multi-rail landscape that reduces single-point-of-failure risk.
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The content on this page is produced by Aerapass for general informational purposes only and does not constitute financial advice, investment advice, or any other form of professional advice. Aerapass is a technology platform provider serving financial institutions, wealth managers, and fintech companies. Before making any financial decision, you should consult with a qualified, licensed financial advisor who can take your individual objectives and circumstances into account.
