Cross-border
payments, which the US dollar dominates, will reach $250 trillion by
2027, up $100 trillion in a decade. There’s just no stopping it.
The
trouble is that international payments are slow and costly, and
Washington’s ‘long-arm’ jurisdiction over all dollar transactions has
politicized trade.
So Basle’s Bank for International Settlements came up with mBridge.
mBridge,
the BIS’ digital interbank payment system, lets Chinese companies pay
UAE vendors in digital e-yuan. The mBridge blockchain instantly converts
the yuan payment into dirham and and credits it to the vendor’s UAE
bank account. mBridge 6-8 ms. execution time and 2.2¢ transaction cost
bring Beijing’s goal of frictionless trade a giant step closer.
And best of all? No US regulators, banks, or dollars are involved.
The
PBOC (the world’s richest central bank), the HK Monetary Authority,
Bank of Thailand and the UAE Central Bank have been using mBridge with
traders in China, Hong Kong, Thailand and the UAE for over a year.
Now BIS says it will release mBridge globally by Xmas.
US
Treasury officials worry that mBridge will help Beijing revolutionize
wholesale cross-border digital payments, and that this is what will
happen with all of China's 143 trading partners:
Anonymous
6 comments:
Discreetly thinking, the USA is attempting to consolidate its banking system, forcing smaller banks into merging with the big banks to make them even bigger and stronger. More small banks in the USA will follow Silicon Valley, First Republic and Signature Banks by being forced to merge with the big boys.
China has four of the topmost biggest banks among the top ten in the world. The USA probably finds this hard to swallow, playing second fiddle to China, so forcing smaller banks to merge with the big ones will swell the assets of the big banks to improve their rankings. That is why those small banks that failed were never allowed to go bust. They were subsequently forced into a 'fire sale' to the big banks.
Seven USA banks are predicted to go bust in 2023. And 186 banks in the USA are at risk of failure. But they still claim the banking crisis is over and the system is robust. Hope depositors have some salt on hand listening to those assurances and doing nothing.
Slowly, one by one, the US control on international finance is being dismantled.
Good riddance. USA has lost all moral authority & no longer deserve to be the world leader. They have abused the position for decades.
I for one, will shed no tears at the collapse of the entire USA. May they rot in hell for all the wonton killings, suffering they have caused. (Its a nicer way to say Fu¢£ you USA.)
Trump Alarmed on Dollar; Beautiful Sight in L.A.
Former US President Donald Trump warned that the dollar is poised to lose its status as world reserve currency – and with it the US’ position atop the geopolitical totem pole – in an interview with Fox Business on Thursday.
“Our country is going to hell and we’re not going to be the big boy,” Trump claimed, arguing that “We have power, but it’s waning. In fact, it’s waning in terms of our currency.”
Should the dollar cease to be the world’s reserve currency, “it’s bigger than losing any war,” the Republican frontrunner continued. While this would have been “unthinkable” under a Trump presidency, he said, “now people are thinking about it” – particularly China – putting the US in danger of being dethroned as global hegemon.
This is even more alarming given the current state of the US as a country, Trump said. “We are already reverting to third world status in many ways. You look at our airport, you look at our terminals, you look at our filthy roads and broken roads and everything else, we’re like a third-world country.”
Even as Trump spoke, Los Angeles saw a series of violent flash mob robberies by gangs that have stolen hundreds of thousands of dollars of luxury goods in brazen daytime raids.
Upmarket stores throughout the United States’ second biggest city have been targeted by masked groups who smash through display boxes and grab designer bags and clothes.
Video clips posted on social media show mobs of up to 50 people rampaging through high-end retailers, breaking glass and yanking away goods attached by security cables.
The raids happen in full view of other shoppers, with clerks and security guards seemingly powerless to prevent them.
Those daylight robberies are true. Shopowners, workers and security personnel were even warned not to try to stop those mobs. Now isn't that good news for would be robbers? Third world country?
Trump: “it’s bigger than losing any war,” should the dollar cease to be the world’s reserve currency.
Beijing knows it. Moscow also.
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