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Venezuela, Iran, China, Russia, Britain and Japan use the same method to go to the US dollar.

bwchinesewx @ 2019/11/10

Over the past half century, the US economy has gained many valuable material wealth worldwide by virtue of its dollar advantage. Therefore, maintaining the status of the US dollar has become an important task for many people in the country. In response, Kit Jukes, a strategist at Societe Generale Bank, said that when the US economy was defeated, it became a different currency war.

For many monetary authorities and central banks around the world, breaking the dominance of the US dollar in the past decades and establishing a fair monetary environment have become almost the same goal. In recent years, there are various ways of dollarization in the world. Among them, the central bank has adopted the new encryption monetary system to bypass the US dollar and its dominant SWIFT payment system, which has become the currency trend. Therefore, many people in the United States are against the encrypted currency. In the final analysis, this is an important signal that the US dollar is in a precarious position.

The latest development is the US financial website Zerohedge reported on November 8th local time, the Federal Bureau of investigation said that the "encrypted currency" will become an increasingly important issue. The Federal Bureau of investigation, Wray, believes that the encrypted currency has brought problems to the agency. He said: "for us, the encryption currency is already an important issue, and we can easily predict that it will become stronger and stronger. It's hard for me to say whether this is the theme of a regulation because it is difficult to deal with. If the US does not keep up with new technologies, it will soon find itself isolated.

Not only that, a few weeks ago, the US Democratic Defense Foundation reported that some of the opponents of the US economy are deploying the encrypted digital currency centered on block chaining technology to help avoid restrictions. At the same time, the United States Internet giant Facebook launched the encryption currency Libra, the United States a number of departments to denounce it, think it has the threat of replacing the dollar.

These signs indicate that the US economy clearly opposes other global new forms of currency, including encrypted currencies. However, once the global monetary authorities are speeding up the layout of sovereign encryption currencies, the barrier from the US dollar level will be powerless. We must know that the sovereign encryption currencies of multiple monetary authorities and central banks are not equivalent to Libra and other non authorized endorsement currencies, which bear the credibility of the real economy, but only adopt the new form of legal tender. Therefore, although the Federal Reserve and many American agencies do not want to see these sovereign encryption currencies, they will not be shifted by the will of the issuers of the US dollar.

It is worth noting that at present, the development of encrypted currencies is in the ascendant in developed countries, emerging markets and oil countries. For example, earlier, the Bank of England governor Mark Carney pointed out that the dominance of the US dollar in the world trading system brought problems to policy makers outside the United States. He believed that the best way to reduce the US dollar position could be to replace the US dollar with a global encrypted digital reserve currency. If the share of the global trade in the digital currency rose, then the spillover effect of the US dollar through the exchange rate would be weakened, and it would be convenient for countries to bypass the US dollar for trading. As early as last February, the Royal Mint issued its own RMG Royal (Mint Gold).

Moreover, according to a recent Reuters report, an informed source said that Japan is now leading the world to build an international network for the payment of encrypted money, similar to the SWIFT system used by banks. It is reported that Japan plans to prepare the network in the next few years, and Japan will cooperate with other countries. According to sources, as early as June this year, FATF (Intergovernmental Financial Action Task Force) approved the plan to build the new network, which was initiated by the Ministry of Finance and finance of Japan.

And in the developed countries such as the United Kingdom and Japan, before the monetary authorities plan to establish encrypted currencies, the encrypted currencies with endorsement of sovereign and physical resources have been accelerating R & D in many oil countries, and some have already been put into use. For example, a few months ago, Venezuela, a Latin American oil country, issued a sovereign encryption currency based on its oil based petroleum currency, which is also considered an effective way to circumvent the US dollar restrictions. Recently, according to Russian media reports, Venezuela plans to trade with Russia in the form of encrypted currency, including the future will use the developed Russian encryption currency, while Russia is developing the encryption currency system behind it has a gold endorsement.

Meanwhile, Iran, another oil country, announced plans to issue its own encrypted digital currency PayMon several weeks ago to bypass the US dollar restricted transactions and to use strategic resources such as gold as collateral in kind. That is to say, the three currencies of Venezuela, Russia and Iran have the shadow of oil and gold behind their encrypted currencies. According to the relevant officials in Iran, the emergence of PayMon will lead to the disappearance of intermediaries, because it is a secure digital currency with multiple functions, and will initially be released by 1 billion. It is reported that Iran is negotiating with Russia, Switzerland, France, the United Kingdom and Germany to carry out financial transactions with encrypted currencies. It can circumvent the US dollar restrictions and continue to trade with the global market.

In addition, some important international financial organizations and institutions around the world have also begun to plan for the establishment of an encrypted currency. For example, as early as June this year, IMF (International Monetary Fund) hinted that it would launch a IMF Coin similar to bitcoin's global digital currency under the special drawing rights mechanism to replace the US dollar. We know that over the past years, the dollar has been able to initiate financial restrictions on other markets through the call for the SWIFT international payment system. Once the encrypted currencies and new payment systems launched by multinational organizations and international organizations have been established, the US dollar led SWIFT payment system is facing challenges.

It is worth mentioning that, according to the Russian media RT website recently reported that the Central Bank of China has announced the launch of its own digital currency plan, the digital currency will be called DCEP (digital money electronic payment), is based on the block chain technology launched a new encryption electronic money system, for this reason, China has carried on the project for about five or six years. Analysts believe that once China's encrypted currency is finally available, the global dollarization will take a more significant step. This can be explained from the increasing circulation of RMB in the global market.

For example, data show that in the 1-9 month of this year, the use of the entire RMB cross border has exceeded 14 trillion, an increase of more than 20% over the same period last year. According to the Japan economic news, a survey showed that the transaction volume of RMB cross-border payment system (CIPS) built in 2015 increased by 8 in 2018 compared with the previous year, reaching 26 trillion yuan. Not only that, not long ago, it also upgraded the RMB cross-border payment trump card CIPS two. Data show that CIPS has provided more than 900 overseas bank legal persons. The business scope of the system has covered 162 countries and regions.

Boston consulting firm (BCG) recently released a report that central banks are testing block chain digital currency technology. Once promoted, users will have a common monetary system and may form a new banking market. Obviously, when the 6 countries of China, Russia, Britain, Japan, Iran and Venezuela start to use the same method to speed up the process of encrypting money, one thing that the US dollar is caught unprepared is about to happen. Because this symbolizes the monetary direction of emerging markets, developed countries and oil countries. (end)