SWIFT: Basic Information
SWIFT is an international system of bank transfers launched in 1973. Unlike payment systems (e.g., MasterCard or VISA), SWIFT is not a platform for processing transactions but a way to securely exchange messages about financial transactions. For this purpose, a system of correspondent accounts and unified terminals installed by SWIFT member banks is used.
The system is popular for several reasons:
• Large geographic coverage. The SWIFT system has developed into a huge network that includes more than 11,000 banks in 200+ countries.
• Legal transparency and clear regulations. SWIFT is trusted by large companies and government agencies. Transfers are not limited in size and are available to both individuals and legal entities.
• Universality. The company's huge distribution makes it possible to send funds to any part of the world, and transfers are available in almost any currency.
Nevertheless, SWIFT has disadvantages:
• High fees for processing and currency conversion. Banks determine the rate at which the exchange takes place, which can be unfavorable for the user, and the commission can reach hundreds of dollars.
• Possibility of freezing transactions on sanctions. In restrictions, SWIFT work can be unstable: the transfer can be frozen and/or canceled. Many banks are completely disconnected from the system.
• Dependence on the work of banks. Sending/receiving a transfer is impossible during non-working hours. This can slow down transaction processing, especially in cases where multiple intermediary banks are involved in the transfer.
Blockchain: What You Need to Know
Blockchain is a distributed ledger, a database that represents a chain of information blocks and is distributed among several network nodes (network participants). A copy of this database is stored on each network participant's computer, which ensures decentralization and the impossibility of changing the information contained in the blocks.
Validators are responsible for creating blocks, confirming transactions, and maintaining consensus, and are paid by network participants to ensure the integrity of the blockchain.
There are many advantages to using blockchain to make payments:
• Absence of intermediaries. Payment transactions are made directly from user to user, without the involvement of banks and other centralized organizations.
• High speed of international transactions. Blockchain operates independently of the business hours of various organizations, and the absence of intermediaries reduces processing time: from a few minutes to an hour.
• Transparency and immutability of transaction records. Blockchain decentralization means that once a transaction is confirmed, it cannot be undone, and transaction information is available to all participants in the network.
• Access to global markets. Independence from centralized organizations allows transfers to be made via blockchain between users from anywhere in the world.
• Anonymity. The only information about the user that is available to other network participants is the public key of the cryptocurrency wallet, which contains no personal data.
Disadvantages of the technology include:
• Cryptocurrency volatility. The lack of real collateral causes high rate fluctuations. You can avoid this problem using stablecoins: their value is secured by fiat currency or other assets.
• Legal restrictions in some countries. The crypto sphere is in the «gray zone» of legislation in most countries, and not everywhere is it a recognized and legal means of payment. Nevertheless, more and more jurisdictions are taking steps towards legalizing cryptocurrencies.
Blockchain vs SWIFT
Speed of payment processing
One of SWIFT's major drawbacks is the speed of transactions. Since payments through this system involve several intermediary banks (especially when currency conversion is required), processing can take 1–5 business days.
Blockchain transactions are processed within minutes. Speed can be increased by increasing fees.
Fees
Multiple intermediaries' involvement in SWIFT transfers results in high fees. Fees are charged for transaction processing, currency conversion, and bank services.
The blockchain commission, in turn, is minimal (on average not more than $1–3). The absence of intermediaries significantly reduces the fee for processing a transfer. Only the network commission is charged, which depends not on the amount of the transaction, but on the size of the transaction in bytes.
Transparency
The SWIFT system does not imply transparency of operations. Neither the sender nor the recipient can track the transfer in real-time and find out the processing stage and which intermediary bank it is at.
Transparency is one of the key principles of blockchain technology. Information about all transactions is available to all network participants.
Security
SWIFT is a technology developed for the secure exchange of information between banks. It includes multilevel protection: verifications at each stage of message transmission, control of physical access to terminals, coding.
However, SWIFT's centralized structure makes it more vulnerable than a decentralized blockchain. The blockchain's structure, combined with data encryption, protects this technology from hacking.
Regulation
SWIFT is one of the most utilized global systems, adopted in 200+ countries around the world. It is clearly regulated and has its place in the legal system.
Legislation related to blockchain and cryptocurrencies is under development in most countries. While many states are developing or planning to develop relevant laws, there is currently no clear regulation of the cryptosphere.
Dependence on intermediaries
Transfers via SWIFT are impossible without the participation of intermediaries, which is a serious disadvantage in the context of sanctions.
Blockchain does not have this problem as it does not include intermediaries in the processing.
When to Use SWIFT and Blockchain?
The use of the SWIFT system is most relevant in the following cases:
• Payments to large corporations and government agencies. Transfers via blockchain are usually not possible in such cases, while most organizations accept SWIFT.
• Traditional payments in countries with strict currency controls. The regulated and widespread availability of SWIFT allows for this payment option.
Blockchain, in turn, is proving to be in demand for a wide range of transactions:
• Restricted payments. Blockchain is not subject to sanctions and operates as usual.
• Payment for digital products and services. More and more companies, services, and platforms are accepting cryptocurrency payments. This is relevant to entertainment platforms and e-commerce systems.
• Smart contracts. These are automated contracts that can confirm a wide range of financial obligations, from insurance payments to payments to suppliers and counterparties.
Integrating Blockchain Payments for Business
Organizing for business the acceptance of payments via blockchain is most convenient through the connection of . Such services automate the payment process and offer a range of additional tools for financial management.
Let's consider the connection process by the example of CryptoCloud:
1. Creating an account. You will need to specify your e-mail address and Telegram to receive notifications.
2. Creating a project. You can do this in your personal cabinet by filling out the form. The system will offer to enter the name and a brief description of the business, select cryptocurrencies and payment method (checkout or payment links), specify links to the site and pages of successful/unsuccessful payment.
3. Integration (when choosing payments via checkout). This can be done via API, HTML widget or ready modules for popular platforms.
After that, you can make a test payment and start accepting cryptocurrency payments. CryptoCloud supports popular coins, allows you to track the status of transactions in your personal cabinet, offers autoconversion to USDT and AML checks, gives you the opportunity to customize the payment page. Integration of the service is free, and the commission is from 0.4%.
International Payments in 2025
There are a number of ways to make international payments, but the most popular are the SWIFT system and blockchain technology. Both options have their advantages: SWIFT is clearly regulated by legislation and is suitable for settlements with large institutions, while blockchain offers faster, more transparent and sure payments with low fees.
To organize transactions via blockchain for businesses, CryptoCloud, a convenient cryptocurrency processor for automated crypto payments and maximum settlement security, will help.
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