Crush the criminals.

Crypto is not a competitor to banks.

Crypto as a competitor to SWIFT is kind of interesting though. SWIFT is basically a fast international transfer. Crypto is actually pretty great for that because you can do a fast transfer against domestic crypt/fiat pairs and after the int'l crypto transfer dump back into fiat so the currency risk is relatively low. Using SWIFT / int'l fiat transfer to buy crypto makes no sense.

In short cutting off SWIFT from crypto exchanges is a nothing burger because domestic crypto/fiat pairs are available and int'l transfer of crypto bypasses SWIFT.

Or you can do that all in a database without the wasted energy.

I know it varies by crypto, but last I checked BTC couldn't handle 2% of the transactions Swift handles.

It's "competition" only in the same way that New Shepard is competition for the Falcon 9 and Crew Dragon.

* crypto includes more than btc * btc has the lightning network for higher volume of transactions

The first I explicitly acknowledged by saying it varies by crypto. Both are irrelevant.

SWIFT is (a) not the only inter-bank system, and (b) is specifically for inter-bank exchanges (the "I" is for Interbank), so when a transaction is between two accounts in the same bank it doesn't need to touch SWIFT.