Saturday, May 30, 2020

Germany Aims To Build Crypto-Friendly Financial System; Plans To Withdraw From US

The different stances of the government now clash as Germany plans to withdraw from the US financial system that recently made Iran and Turkey unable to make transactions with other countries due to their given sanctions. As this issue arises, Germany began their step to create their own independent financial system which is free from US control.

Germany is known as Europe’s biggest contributor to its economic status which applies that its future decisions can truly affect the country’s stance and even the world market. As the US government tackles their confusing side on crypto, other countries seem to be unsatisfied with their system and have reached their final decision.

“For that reason it’s essential that we strengthen European autonomy by establishing payment channels that are independent of the US, creating a European Monetary Fund and building up an independent Swift system”  says Heiko Maas, German foreign minister in an interview.

Even Russia and Iran made their own actions regarding US’ strict regulations as they made their exchanges using the mode of cryptocurrencies in order to comply with the SWIFT financial system of America.

“Over the past year or two, the use of cryptocurrency has become an important issue. This is one of the good ways to bypass the use of the dollar, as well as the replacement of the SWIFT system. They [Russian authorities] share our opinion. We said that if we manage to promote this work, then we will be the first countries that use cryptocurrency in the exchange of goods,” says Mohammad Reza Pourebrahimi, Iran’s Parliamentary Commission of Economic Affairs (IPCEA) head.

The SWIFT financial system or Society for Worldwide Interbank Financial Telecommunications is a “messaging network that financial institutions use to securely transmit information and instructions through a standardized system of codes”. This system is applied in every country under the US which is nearly 10,000 members institutions. But due to their uncontrollable restrictions and pressure on other countries, most of these institutions wanted to be free from the US SWIFT system.

Great for Bitcoin?

According to a German-Finnish entrepreneur and developer of Mega named Kim Dotcom, the plan of Germany to be free from US financial system is an optimistic information for crypto due to the fact that it may lead to the devaluation of US dollar, making cryptos the best option for exchanges and storage of money.

“Significant. German Finance Minister proposes EU monetary fund, EU swift and non-US payment systems. He says its to salvage Iran deal. But it’s really the EU exit from USD dominance. Like I said, USD will collapse. Buy crypto and gold,”  Says Dotcom on Twitter.

Are countries ready to enter the world of crypto for the sake of freedom from restrictions or will it lead to more trouble in the economic status of the future

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