The number of transactions which are handled by bypassing the dollar rises. The reason is the disappointment with US policy: According to many market participants, the US government has the dollar as world currency abused to enforce their own interests by force. A new technology called Ripple might break the global monopoly of the US dollar.
New financial technologies and payment systems threaten according to experts, the global dominance of the US dollar in international payments, reports the Financial Blog Sovereign Man. This allowed transfers between two parties directly, bypassing the US financial system and the dollar. To date, all transactions were conducted worldwide through dollar accounts at US banks practically. New, innovative payment systems such as Ripple, based on the block chain technology begin to establish themselves as alternatives: Ripple, among its investors Andreessen Horowitz, Google Ventures, CME, IDG Capital and Santander, offers the possibility of direct international transfers – a method that makes the dollar simply superfluous (see the feature video at the beginning of the article).
Put these technologies internationally in large by style, threatens the US a sensitive power loss. They would thus their dominance over the international financial system, its architecture still largely rests on the decisions of Bretton Woods from 1944 to lose. The dollar as a world currency is one of the two pillars of American power – the other is the global presence of American forces
Also, almost always to find the immense advantage of the US new donors, would be weakened.. Since the dollar and the US banking system are linchpin of the world financial system, investors and States had been virtually forced to constantly invest in dollar assets and US government bonds. Given a national debt of around € 19.5 trillion therefore any alternative to the existing debt and payment system of the US elites must be understood as a threat.
Simon Black of Sovereign Man argues that the often ruthless economic – and geopolitics of the United States is expected to increase the incentive of other countries and banks to look for alternatives. It refers you primarily to the numerous military interventions in other countries as well as the partly aggressive way how US law is enforced internationally.
“You have the trust and confidence which the rest the world has placed in it, abused by debt piled in huge extent led wars in other countries and have thrown on hospitals remote-controlled bomb. You have created absurd rules and had to be expected that foreign banks to stick to it “the audacity writes Black. He refers in this connection to the example of French bank BNP Paribas, which had to pay $ 9 billion to the US authorities, after which the French Government questioned publicly the American claim to power on the world financial system.
The use of alternative payment systems is indeed still in its infancy, but already works. Two months ago a Canadian bank had made the first payment with the Ripple protocol to Germany, writes Black. The major Swiss bench UBS and German bank to join forces in developing a new cyber currency. It should simplify transactions between financial firms and make cheaper. The promoted by the Swiss bank system could already come in consultation with central bench s and regulators in two years on the market.