Topic: Western sanctions will push efforts to move away from Global reserve currencies - page 2. (Read 208 times)

The alternative is already here which is bitcoin but if not on a critical situation like in that of Russia i think it never worth doing away with, ordinarily sanction can not be placed on any country without being evident by everyone that what it does to deserve sanction really worth it, Russia invassion could have been avoided and all the wasted lives and properties could have been ameliorated through dialogue, the whole world believe and see to what Putin did as unethical and something that has the vote of over 95% of the entire world worth requoned with, i believe we all need the support of the western international swift in one way or the other.


let us not take the scenario of China to be compared with that of Russia, China only sit to build on it own internal systems from within and decided to cut itself from the western and  international services but still engage in maintaining a good report with the world at large regardless of any country, meaning that China was not cut off from the western and international services but willingly choose to stay off because it has built it own system good enough for survival, lastly China does not engage in any form of human massacre or it equivalent.

If Russia finally decided by going with the use of bitcoin (crypto) i think it can be pretty good because it is a decentralized system, just that the swift ban may affect some exchanges from operations else bitcoin can still be a rescue alternative.

If by replace we mean that the system they use will end up being adopted globally, I don't think so. If you mean a system adopted by them and a few other countries, it is possible. What I also find interesting is the window of opportunity this opens for cryptocurrencies. It seems that Russia is considering charging friendly countries for gas and oil in Bitcoin.

The Russians are currently being hammered with sanctions from the West, because of the invasion in the Ukraine. The seven Russian banks excluded from SWIFT are Bank Otkritie, Novikombank, Promsvyazbank, Bank Rossiya, Sovcombank, VNESHECONOMBANK (VEB) and VTB BANK.

This move was aimed at economically isolating Russia and crippling the Russian financial system in order to pressure the Putin regime to end its military operations in Ukraine.

I think this move will bring a new era for global monetary flows, where Russia and China and enemies of the West, will look for alternative ways to do international transactions.

Swift are doing almost 40 million messages a day and this is enabling the exchange of trillions of euros between companies and governments around the world. Swift are governed by the National Bank of Belgium and the central banks of Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom, and the United States. (So this is more a organization that are controlled by the West)

China have already been stockpiling foreign currencies for years ==> https://www.bloomberg.com/news/articles/2021-06-24/chinese-banks-stockpile-record-1-trillion-of-foreign-currencies and Russia already have a system in place to bypass SWIFT with much higher cost ==> https://www.reuters.com/markets/europe/russia-could-work-around-swift-ban-with-high-costs-2022-03-07/

Read more about it here --> https://en.wikipedia.org/wiki/SPFS

So the lessons that are learnt from these Western sanctions are that a reliance on SWIFT and international global reserve currencies, should be reduced and alternative be found.

One of those alternatives might be Crypto currencies.... https://www.finyear.com/Will-crypto-help-Russia-get-around-sanctions-and-Swift-ban-No_a46926.html but Western countries are already making that difficult too..... https://www.investopedia.com/treasury-department-cracks-down-on-crypto-used-to-bypass-russian-sanctions-5220729

Do you think the enemies of the West will be successful to replace SWIFT and the use of Global reserve currencies?

Let's discuss...