by Kenneth Schortgen, The Daily Economist:
Last week we wrote about Russia finally completing its alternative payment system that now makes it virtually invulnerable to any economic warfare performed by the U.S. through the global SWIFT system. In fact, it has been this exact type of sanction that has stifled economies in Iran, Iraq, North Korea, and even the former Soviet Union during the Cold War.
But while on the surface Russia has indicated that their primary purpose for implementing their new payment system was to defend against the U.S. cutting them off from access to dollars through SWIFT, the fact that they have created several different new economic coalitions over the past five years means that the now have the power to do even more than just protect against U.S. economic aggression.
In fact, since they have also become the world’s top energy producer and distributor, as well as one of the largest holders of gold on the planet, Moscow is prepared to even use their new payment system to collapse the petrodollar and turn the tables on America’s domination through its 40+ year control over the reserve currency.
During a meeting with Russian President Vladimir Putin last Wednesday, Central Bank governor Elvira Nabiullina stated that:
“There were threats that we can be disconnected from SWIFT. We have finished working on our own payment system, and if something happens, all operations in SWIFT format will work inside the country. We have created an alternative.”
The alternative system, known by its abbreviation SPFS, is analogous to SWIFT for financial transactions taking place in Russia and has been in the works for years, with 330 Russian banks connected over a year ago. This number will likely increase now that it has been successfully developed and implemented. Nabiullina also added during the meeting that 90 percent of ATMs in Russia are now compatible with Mir, a Russian version of the Visa and Mastercard payment systems that is used domestically. However, the SPFS is still far from perfect, not operating from 9 pm to 5 am Moscow time and with a transfer cost of 5 cents per transaction.
Whether Russia’s aim in creating and implementing an alternative to SWIFT is based chiefly on protecting its own economy or not, the move further illustrates how the concentration of international power is steadily moving eastward. Along with parallel efforts by China and other BRICS nations, U.S. and Western economic hegemony is unraveling, a stark reality that U.S. interests – particularly those of the “deep state” – are desperate to avoid. – Mint Press News
However using this new SPFS system for sovereign and bi-lateral payments may be just the first step, as rumors of it connecting with China’s CIPS system to create an eventual gold backed monetary system are already on the radar.
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