Studies Into the Potential Replacement of Swift with Digital Currency: Technology, Regulation, and the Market

Abstract

With the rapid development of digital currency and blockchain technology, digital currency has attracted widespread attention as a new payment method. As a traditional cross-border payment and settlement method, SWIFT has significant advantages in its market position and technical capabilities. However, as a new payment method, digital currency has the advantages of speed, low cost, and no geographical restrictions, so it may become a substitute for SWIFT. This paper aims to study the possibility of a digital currency replacing SWIFT, focusing on the challenges and opportunities of digital currency in terms of technology, regulation, and market. In terms of technology, this paper would analyze the advantages and disadvantages of digital currency and blockchain technology and explore the technical application of digital currency in cross-border payment and settlement. In addition, this paper would also analyze technical issues, such as the security and scalability of digital currency, and propose corresponding solutions. In terms of regulation, this paper would analyze the regulatory framework and compliance requirements of digital currencies and the status and role of digital currencies in the international financial regulatory system. This paper would also explore the regulatory and compliance issues of digital currency and propose suggestions and solutions for digital currency regulation. In terms of market, this paper would analyze the competitiveness and application potential of digital currency in the international trade and cross-border payment markets, as well as the market prospect and business model of digital currency. In addition, this paper would also analyze the advantages and disadvantages of digital currency and traditional payment methods, as well as the challenges of digital currency in marketing and application. Through the analysis and discussion of technology, regulation, and the market, this paper aims to provide a theoretical and practical basis for digital currency to replace SWIFT and a reference for relevant policy formulation and practice. This paper provides a comprehensive and in-depth analysis and research on the possibility of a digital currency replacing SWIFT, covering technical, regulatory, and market issues. The structure of the thesis is clear, the logic is rigorous, the argument is clear, and it has innovation and practical value. This paper has important theoretical and practical significance in the continuous development and application of digital currency and blockchain technology. It has specific references and inspiration for research and practice in related fields.