Dedollarization is accelerating – Cointribune – The Blockchain Cafe

Nine countries led by Iran are launching an alternative to the SWIFT network. At the same time, the BRICS are discussing the end of the dollar in Cape Town.

Iran takes revenge on SWIFT monopoly

Members of the Asian Clearing Union (ACU) will launch a new cross-border financial messaging system this month.

Disconnected from SWIFT for years, Iran has developed an alternative. The central banks of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka, Myanmar and Iran are participating.

As a reminder, the Islamic Republic has already linked its banking system to the Russian equivalent of the SWIFT network (SPFS) at the beginning of the year.

“Dedollarization is no longer a voluntary choice of certain countries, it is an inevitable response to the militarization of the dollar”Iranian First Vice President Mohammad Mokhber said.

According to Economy Minister Ehsan Khandouzi, Iran currently conducts less than 10% of its trade in US dollars, compared to almost 30% in 2021.

Russian Deputy Prime Minister Alexander Novak said last month from Tehran that 80% of trade between Russia and Iran is now done in their national currencies.

Moreover, Iran should soon join the BRICS economic bloc which is considering the creation of a new international reserve currency.

The BRICS are talking big bucks

The foreign ministers of the five BRICS member countries called on Thursday for a “rebalancing” of the world order during discussions which will take place until June 03 in South Africa.

“Our meeting must send a strong message: the world is multipolar”said Indian Foreign Minister Subrahmanyam Jaishankar. “We are a symbol of change and we must act accordingly.”

“For two decades we have heard calls to reform international institutions, but we have never ceased to be disappointed. It is therefore imperative that BRICS member countries show sincerity in reforming the global decision-making process, including that of the United Nations Security Council.”he added.

Indeed, the BRICS (60% of the world’s population) only have 15% of the voting rights in the IMF and the World Bank…

Russian Minister Sergey Lavrov said for his part that “more than a dozen” nations wish to join the BRICS. Among those present in Cape Town were ministers from Saudi Arabia, Iran, United Arab Emirates, Nigeria, Argentina, United Arab Emirates, Egypt, Indonesia and Kazakhstan.

“We hope that other countries will join our big family”, said Chinese Minister Ma Zhouxu. Knowing that the BRICS already represent 31.5% of world GDP (at purchasing power parity) against 30.7% for the G7…

The group’s various emissaries also discussed a new reserve currency aimed at replacing the US dollar.

“The New Development Bank (the “BRICS bank”) could become a kind of clearinghouse if the idea of ​​creating a common currency for the members of the BRICS comes to fruition”Finance Minister Anton Siluanov said on Wednesday.

“The idea of ​​creating a common currency, which I would rather call a payment unit within the BRICS countries, is circulating and being discussed. We also have proposals regarding the use of stablecoins backed by real assets, for example gold”he added.

Bitcoin > Dollar

After all, Iran already uses bitcoin to pay for some of its imports. Better still, two candidates for the US presidency have clearly indicated their affinities.

Robert Kennedy a declared than bitcoin “guarantees freedom of transaction, which is as important as freedom of expression”.

Republican Desantis lambasted the CBDC while accusing Washington of “not liking bitcoin because it’s uncontrollable. He poses a threat to them. »

Same story on the side of the Iranian parliament which is not very cheerful by the CBDC either. “The Central Bank should halt its CBDC projects”said MP Ali Khezrian.

Bitcoin has the advantage of being a payment system as well as a store of value. Two in one. The BRICS could use it overnight.

No need for gold-backed stablecoins. Who will be responsible for the gold supposed to back these stablecoins? China ? Who can guarantee that China will not repeat the coup of 1971?

It would be a shame not to dare the Bitcoin Standard. And perhaps Russia is thinking about it furtively if we are to believe the recent comments of Antoly Aksalov, a Duma official:

“Cryptocurrency exchanges will be used to conduct international transactions and thus circumvent sanctions restrictions”.

Stablecoin, CBDC, gold, multi-commodity backed gas factory? Or simply the stateless bitcoin for international reserve currency?