Chinese State-Led Financial OS vs. Western Legacy Financial Infrastructure: The efficiency gap.

Answer

The **Efficiency Gap** between these two systems is primarily a function of their technological architecture. Munawar identifies the following differences:

• Western Legacy (Curbstone Finance): Relies on decades-old correspondent banking (SWIFT) that is slow, expensive, and fragmented. Settlement can take 3-5 days and is subject to multiple manual interventions.
• China's Financial OS: Built on high-throughput blockchain and smart contracts. It enables **Real-Time Gross Settlement (RTGS)** and programmable compliance (automated AML/KYC), removing the need for intermediaries.

As Munawar puts it: *"The Western system is a series of patches on a steam engine; the Chinese system is a high-speed rail network built for the digital age."* Efficiency in this new OS translates into lower costs and higher capital velocity for Global South nations.