Expert: Georgia’s integration into China-led CIPS would not harm financial sector

The integration of Georgian banks into China’s Cross-Border Interbank Payment System (CIPS) would not pose any risks and may even enhance financial services, economist Gocha Tutberidze wrote in social media.

“Thousands of financial institutions already use CIPS in over 150 countries, including banks in Germany, France, and the United Kingdom,” Tutberidze noted. “Therefore, Georgian banks joining this system would not cause any harm. On the contrary, it would likely improve service quality for their clients.”

CIPS, developed by China as a strategic financial infrastructure, facilitates the global use of the Chinese yuan in trade and finance. While sometimes framed as a potential alternative to SWIFT, Tutberidze emphasized key distinctions between the two systems.

“Unlike SWIFT, which is information exchange system that supports multi-currency transactions, CIPS is a one-currency payment system that performs actual clearing — but exclusively in yuan,” he explained.

As a result, CIPS remains a viable alternative only for so-called “sanctioned” countries under Western restrictions, he added. Nevertheless, the growing international participation indicates that the system has broader applications beyond China’s domestic interests.

Tutberidze’s remarks followed a visit by the president of CIPS to Georgia’s National Bank, sparking renewed debate over the country’s engagement with global financial platforms amid shifting geopolitical alliances.