The Situation With Russia Will Show How Cryptocurrency Cannot Be Stopped
...And cryptocurrency will get the blame.
We are seeing a lot of things happening regarding the situation with Russia. Regardless of which side one is on, we know that a lot of innocent people are going to suffer. Of course, when governments (and politicians) are involved, suffering usually is present.
This is the reason why it is imperative that we create avenues that lead to freedom. The work we do each day on Hive is helping in that cause. We are laying the foundation for a system that is going to allow the bypassing of tyranny.
Of course, we have to keep in mind this is nothing new. As we will see shortly, avenues existed above what we are being told. This is where Russia has options outside of cryptocurrency.
It is also where cryptocurrency will be blamed by politicians for their sanctions not working.
Banned From The SWIFT Network
By now, most heard how Russia was banned by the US and its European allies from utilizing the SWIFT network. This is something many hear about but really do not know what it is.
At its core, SWIFT is a messenger system. It basically notify banks of what others are doing. Being cut off from this means communication regarding transactions ceases. This can be a major setback for the banks that are excluded.
We were told this was the "nuclear option" against Russia for its actions against Ukraine.
This is what the White House said about the situation:
First, we commit to ensuring that selected Russian banks are removed from the SWIFT messaging system. This will ensure that these banks are disconnected from the international financial system and harm their ability to operate globally.
This sounds fatal if we truly do not understand what is taking place.
SWIFT is a messenger system but not the only one. In fact, there is another, CHIPS, which is going to play into this.
This is run by 43 international banks. It is also tied to settlements. Here is where we see the situation completely change.
While the major banks from Russia are banned from SWIFT, they can operate on CHIPS.
Here is what the Treasury put out about the matter:
Within 30 days, OFAC is requiring all U.S. financial institutions to close any Sberbank correspondent or payable-through accounts and to reject any future transactions involving Sberbank or its foreign financial institution subsidiaries. Payments that Sberbank attempts to process in U.S. dollars for its clients — with examples ranging from to technology to transportation — will be disrupted and rejected once the payment hits a U.S. financial institution.
Notice how this applies to US financial institutions. CHIPS is 24 international banks and 19 domestic (US). This means the major Russian banks can use any of the others to interact with.
Here is why the sanctions placed over the years never seem to work. These entities are not truly cut off from operating.
Why is this? The answer is because the international banking cartel uses the Eurodollar system. It is not dependent upon solely operating using US Dollars.
Are we starting to see how global banking truly operates?
Cryptocurrency Mirrors This
It is questionable whether those who are behind the sanctions even understand the system that is truly operating. From what we covered here, it should be easy to see how there are parallel systems running, established long before the SWIFT network went into effect.
To give some insight in this, CHIPS use to be run by what was known as the New York Clearinghouse Association. This is what JP Morgan used in 1907 to step in and save the US economy. In other words, this long predates SWIFT as well as being a system that Russian banks can access.
To give a quick illustration, here are Russia's two biggest banks. Notice how they are still able to use CHIPS.
Do you recall the sanctions placed upon Venezuela? Here was another situation where they were cut off from SWIFT. Banesco is Venezuela's largest bank. In spite of the sanctions that were imposed years ago, this is what we see.
It is still authorized to use CHIPS even after the years of sanctions by the US-led coalition.
Here is where we see the lesson for cryptocurrency.
There is not just one game in town. Just like the international banking system, we are seeing many different crypto networks being established. Thus, people are free to use anyone of their choosing. Bitcoin, Litecoin, Ethereum, TRON, Hive, EOS, or a host of others can all be selected from. Of course, on those are other currencies that were built which can be used for transactions.
Cryptocurrency is such a threat because it opens up the same potential as the Eurodollar system yet, this time, it is available to everyone, not just the banks.
Nevertheless, in this situation, it will likely get the blame for the sanctions against Russia not working. While the Russian government could turn to cryptocurrency, the reality is that its banking system does not really need it. Through alternate mechanisms outside SWIFT, those banks can operate just like they always do.
Of course, this is already being harped upon. We see everyone from Elizabeth Warren to Jerome Powell calling for regulation over cryptocurrency due to the situation with Russian.
The Puppet Masters
It is long said the banking industry runs the world. This is not based upon some conspiracy theory citing the Rothschild empire (which is a fraction of what it was 100 years ago). However, it is based upon the fact that the international banking cartel existed outside the reach of any government while also being able to "make money with the sole purpose of making money". Once that happens, they truly became the puppet masters.
With that said, guess who the puppets are. The political and bureaucratic nitwits we see droning on upon the actions they are going to take and how it will achieve the goal they are setting out. Hopefully we are seeing, from a financial perspective, why this never works.
Cryptocurrency is showing us to ignore the puppets because they are no more a threat to this than to the traditional puppet masters. Impotency is only being expanded on that end.
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The Eurodollar system was based upon Ledger Technology. This was a closed system which was non-transparent, run by bankers.
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Cryptocurrency is Distributed Ledger Technology run by individuals all over the world. It is an open system that is transparent although aspects of it are likely to change.
What is vital is to understand that it is using the same concepts for both systems. Since the first is out of the reach of the politicians, we can conclude so is the second.
For 70 years, the Eurodollar system operated without much attention from the general public. It is still something that few truly understand. However, it is the blueprint for cryptocurrency.
This has a bit more attention and is equally as potent. The fact that the establishment is no better equipped to combat this than the former shows how much of what we hear is noise.
For roughly a dozen years, Bitcoin churned along, regardless of what was taking place. Now we see a number of other blockchains doing the same thing. This only grows in size and scope.
The hope is that people start to realize how this is unfolding and what is taking place. It is not new yet is including different players.
Do not buy into the FUD. Cryptocurrency will be just fine.
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