The Imperative of Adopting Blockchain-Based Digital Currency as a Substitute for the SWIFT System

Document Type : Original Article

Authors
Hossein Asadi Gorji 1
Homayoun Asadi 2
1 PhD student in Economics, Faculty of Economics, Ferdowsi University, Mashhad, Iran.
2 PhD in Entrepreneurship, Faculty of Management, Sari Branch, Islamic Azad University, Sari, Iran.
10.22034/jmek.2026.601929.1207
Abstract
The global financial system and the SWIFT network have increasingly become strategic tools for the United States to impose and monitor economic sanctions against nations such as Iran. Following the September 11 attacks, the US gained covert access to SWIFT transaction data, transforming this network into the primary, lowest-cost mechanism for detecting sanctions violations. While global powers like China and Russia are actively developing alternative financial messaging systems to mitigate these risks, Iran has yet to implement an effective strategy to bypass this critical vulnerability. This study aims to elucidate the necessity of replacing the SWIFT system with blockchain technology and digital currencies. Employing a descriptive-analytical methodology, the research examines SWIFT’s structural vulnerabilities to US surveillance and evaluates the robust security mechanisms inherent in blockchain and cryptocurrencies. The findings indicate that digital currencies, characterized by their decentralized nature, transparency, high security, and elimination of political intermediaries, can establish a secure framework for Iran’s international transactions. Furthermore, this technology inherently prevents foreign entities from monitoring financial flows while significantly reducing transaction costs. Consequently, the study concludes that to neutralize the impact of sanctions and mitigate systemic financial risks, the Central Bank of Iran must urgently design and deploy a national blockchain-based digital currency. This strategic shift will preserve Iran’s monetary sovereignty and successfully route international trade transactions away from US-monitored financial bottlenecks.
Keywords
Digital currency
Blockchain technology
SWIFT system
Economic sanctions
Decentralized banking
Subjects
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Management, Economics and Entrepreneurship Studies
Volume 6, Issue 1
Spring 2025
Pages 1-11

  • Receive Date 05 December 2024
  • Revise Date 22 January 2025
  • Accept Date 28 February 2025