Russia going to an alternative to the SWIFT system pt1

Ok,, this is huge.. Really huge..!!!
This is going to be a three part article..

The short story is that Russia has announced that it is going to move to its own SWIFT type system. If you don’t know about the SWIFT system, you are in good company.

The SWIFT system is a necessary and vital piece to understand what is going on with the global finance and trade. As well as how the blockchain will be playing its part going forward.

In short The SWIFT system has nothing to do with the direct and actual financial exchange. No finances travel through it. It is only a messaging system to verify and validate any and all cross border payments. And probably all payment transactions globally. When you make a deposit or make a transaction, and the bank tells you it will take 3-10 business days for the transaction to take place.. That’s the SWIFT in play. This is the same for buying a cup of coffee with your debit card and buying 100 million barrels of oil. It all is verified and validated through this one verification system…

Places like Paypal use this. When most transactions take place through Paypal. Paypal fronts the money for the transaction, and they pick up the actual money once the settlement is complete. The settlement is not actually complete until the validation and verification is showing completed through the SWIFT system. Its one of the reasons regular transactions made in direct connection with your bank account cost nothing, because the funds can be verified immediately. And with a bank or debit card there is a service fee involved (Plus there are other entities getting their cut also).

When a country like the US imposes sanctions on another country like Russia or China.. The people in the US Treasury (with generally the approval of the WH or Congress), contacts the nice people at the SWIFT system. They give the people at SWIFT some codes for the types of transactions that are being sanctioned, and which banks the sanctions will take place at.. ANND Viola.. the transactions related to sanctions have stopped, and no finances will flow whats so ever… This is also how a country like the US can stop trade with something like Steel, Uranium, tea, really good bacon, certain types of cheese, ect..

And yet anything to do with space machinery, tech, ect. between the two countries has not stopped at all and stays fully open.. So if you think sanctions or borders are immutable things.. That’s your answer,, They are not..

So the joke is that this one system is the equivalent to “The Spice Must Flow” and Relies on “The One Ring To Rule Them All”.

And the people who rely on cryptocurrency for your transactions, are reliant on this system when making purchases, esp in translating Crypto to Fiat.. I believe this is one of the tools and indicators used for taxable events. However it does not look like at this time that any Crypto to Crypto transactions utilize the SWIFT system. For the people who are tracking your Crypto by the relation of apparent value by US dollars,, you are in one way or another tied to this SWIFT system..

So the new question and problem on the table. When its talked about the blockchain being something that removes the need for a 3rd party to validate and verify any and all transactions,, That’s whats at stake here. The blockchain removes the need for an entity like the SWIFT system..

The SWIFT system has been around since the 70’s and it is very much agreed that it runs on out moded tech. It is also run and owned by HSBC, which of course are beholden to the central banking system. This is a huge deal because the vast majority of finance transactions are tied into this system. But also and more importantly, it works solidly.. Like an early model Volvo, you cannot kill it..!!

There have been some missing pieces with what has been going on with Russia and the SWIFT system.. And missing pieces just came up on the surface… Which will be pointed out in Part two..

https://www.rt.com/business/418665-russia-banks-ready-shut-swift/