Business 24 August 2018

Gerald Fenech

Germany wants payments system independent from US

Trouble may be brewing for U.S. dollar’s dominance following reports that Germany has called for an independent payment system that is free from the influence of the United States government. This development carries some clout in the economic and finance markets since Germany is the European Union’s biggest economy and is set to continue taking the lead on the continent especially after the exit of the UK from the EU—Great Britain is currently EU’s second largest economy.

In the past few months, Iran and Turkey have been hit hard by U.S. sanctions and have been excluded from the global financial system, resulting in them being unable to initiate transactions with other countries. With populations exceeding the 200 million mark when combined, this is a huge dent in the world’s economy.

In response, German Foreign Minister Heiko Maas proposed the establishment of a European Monetary Fund as well as an independent SWIFT system. Maas told the Financial Times, “For that reason it’s essential that we strengthen European autonomy by establishing payment channels that are independent of the U.S., creating a European Monetary Fund and building up an independent Swift system.”
The SWIFT financial system is based in Belgium, but the country is open to U.S. sanctions, which means it doesn’t have a choice but to accept U.S. authorities’ restrictions not just on financial institutions, but also governments. The U.S. government’s hold over the SWIFT banking system is making it impossible for European businesses to operate freely. This new development, however, could open possibilities for the crypto market to continue to flourish.

According to the Financial Times, French energy conglomerate Total pulled out from its partnership with a major Iranian gas project following pressure from the U.S. government.

This year, the Iranian government switched to digital assets—despite previous attempts to ban crypto trading—so it can trade with allied countries. This move was seen as an important development, lending certain credence to the cryptocurrency market as a whole.

Mohammad Reza Pourebrahimi, Iran’s Parliamentary Commission of Economic Affairs (IPCEA) head, said that Russia has agreed to use decentralized financial networks such as cryptocurrencies to transact with Iran, to circumvent the U.S.-controlled banking system.

“[IPCEA has already] obliged the Central Bank of Iran to start developing proposals for the use of cryptocurrency. Over the past year or two, the use of cryptocurrency has become an important issue. This is one of the good ways to bypass the use of the dollar, as well as the replacement of the SWIFT system. They [Russian authorities] share our opinion. We said that if we manage to promote this work, then we will be the first countries that use cryptocurrency in the exchange of goods,” Pourebrahimi said.

Once the United States loses its dominance over the global banking system, especially with a growing number of countries has been moving into independent financial networks, this means a boost for cryptocurrencies like Bitcoin Cash (BCH), which continues to be adopted by more and more users and investors. BCH is the ideal cryptocurrency, given its strong infrastructure, continued innovation and design as a true digital-based retail currency.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

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