Four Georgian commercial banks, including Cartu Bank, have expressed interest in becoming direct members of China’s Cross-Border Interbank Payment System (CIPS), said the Governor of the National Bank of Georgia, Natia Turnava.
Speaking on the Cartu podcast, Turnava said the initiative follows growing cooperation between the National Bank of Georgia and the People’s Bank of China.
She claimed that the central bank is encouraging Georgian financial institutions to strengthen payment connections with China’s financial system amid increasing trade, tourism, and direct flights between the two countries.
“We should use this opportunity and support our banking system so that it develops closer payment ties with China’s financial system,” Turnava said. “Trade is growing, tourism is growing, and we see that the number of direct flights is also increasing.”
Turnava stressed that CIPS should not be seen as an alternative to the global SWIFT messaging system, but rather as a complementary platform used primarily for transactions in Chinese yuan.
“SWIFT is mainly used for payments in dollars and euros, while CIPS serves transactions in yuan,” she said. “Many of the world’s leading banks participate in both systems simultaneously.”
The governor noted that four Georgian banks have already expressed interest in direct membership in the Chinese payment system, and the number may increase in the future.
She added that representatives of the CIPS system have visited Georgia several times and are supporting the process of potential integration.
CIPS, launched in 2015 with the support of the People’s Bank of China, provides clearing and settlement services for cross-border payments in Chinese yuan and is part of Beijing’s strategy to expand the international use of its currency.
Based on the available data, CIPS participants are located in 121 countries and regions, with the network serving more than 4,900 banking institutions across 189 countries.
Earlier, the National Bank of Georgia also announced that it had secured access to the China Interbank Bond Market (CIBM), expanding opportunities for Georgian financial institutions to operate in Chinese financial markets.
Related story: Reports: Four Georgian banks preparing to join China’s CIPS payment network
