The greenback, again and again. While the US dollar (USD) is increasingly used in SWIFT payments, this is not the case for the euro, which has seen its use drop significantly over the last 10 years. How to explain it?
SWIFT payments in euros have declined
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is the most widely used payment network in the world, thanks to which we can commonly make transfers between bank accounts. The company published its annual report and she notes that the trend is not particularly positive for the eurowhich tends to be swallowed up by other currencies.
💡 Our guide to buying Bitcoin in minutes
In March 2024, the euro only represented 21.93% of international transactions via SWIFTcompared to 47.37% for the dollar. And if we exclude internal transactions in the euro zone, the share is even lower: 9.4% according to calculations by the Atlantic Council think tank.
Open an account on N26, the crypto-friendly bank
Other currencies increasingly used
The euro is the currency that has lost the most ground over the last 10 years: in 2014, it represented 30% of international payments via SWIFTapproaching a third of the volumes. Hence a not very optimistic conclusion for the euro:
“The relatively modest position of the euro within international payments, after a quarter of a century of operation […] reflects the unique strength of the dollar.»
🌐 Also in the news – China, Russia, India… These BRICS+ countries which are already working on a common payment system
The SWIFT report also notes that beyond these two currencies, payments have become fragmented. Despite the fact that the dollar has gained ground, the use of other currencies is on the rise amid dedollarization :
“A growing number of cross-border payment agreements using local currencies […] have further fragmented the global payment system. »
We will also have to count on the arrival of central bank digital currencies (MNBC), which also represent the potential for fragmentation within the same currency. The financial model on which the global economy is based is therefore evolving rapidly.
Cryptoast Academy: 75% off before Black Friday to celebrate the bullrun
Advertisement
Source: Atlantic Council
The #1 Crypto Newsletter 🍞
Receive a summary of crypto news every day by email 👌
Some links in this article may be affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission.
Investments in cryptocurrencies are risky. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your capacity to lose part of this savings. Do not invest if you are not prepared to lose all or part of your capital
Journalist at Cryptoast since 2017, I am passionate about the issues of decentralization, privacy and regulation. I specialize in traditional economics and finance by analyzing how news in this sector influences the cryptocurrency industry, providing a unique and informed perspective to Cryptoast readers.
Marine Debelloir
3263 items
