On February 26th, 2022, the U.S., EU, UK and Canada, agreed to ban a select group of Russian banks from the Society for Worldwide Interbank Financial Telecommunications, aka… SWIFT.
The move was originally intended to cripple Russia’s financial system in an effort to pressure Putin into ending his military operations in Ukraine. Seven Russian banks were denied access to SWIFT, initially causing somewhat of a negative impact on the Russian economy, but this move ultimately backfired on the U.S and its allies last week when, during the BRICS conference, the bloc introduced BRICS Pay.
While there are some news outlets giving this story a bit of attention, it’s not nearly getting the exposure it deserves, as this is one of the biggest economic developments of our time. In fact, 159 out of 195 countries will have the ability to bypass the SWIFT system entirely using BRICS Pay Blockchain based payment platform. Let that sink in for a moment…more than 3/4 of the countries in the world will be able to trade in currencies outside of the U.S. Dollar.
In addition to the BRICS Pay announcement, Vladimir Putin confirmed that discussions of creating a gold-back currency, known as the “Unit”, are accelerating in an effort to replace the U.S. Dollar as the Global Reserve Currency. While the dollar still remains king of all currencies, the Federal Reserve seems to be doing nothing to neutralize the threat.
The big question is, what kind of impact will this all have on the cost of imports, such as Crude Oil, Grain, Rice and Corn, if we are not able to by those commodities in US Dollars? The bottom line is, the US Government shot themselves in the foot, and now, we may have to deal with a level of inflation that could be shocking.
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