Germany has called for a cross-border payment system that is independent of the U.S. Well, Germany, which is Europe’s largest economy, is worried about U.S. treatment to the Emerging Markets (EM). For months, the U.S. has sanctioned Turkey and Iraq for different reasons. Indeed, the U.S. imposed sanctions on the EM by cutting them off global payment system, SWIFT. As a result, the two countries have been restricted from doing business with other countries. Also, they are unable to use the global banking system.
Germany is worried about the incidents
Well, German foreign minister Heiko Maas is suggesting that the European countries create Euro autonomy. To this end, he sued for a payment channel that is independent of the U.S. Also, there is need for a European Monetary Fund, he added. He said that the establishment of a SWIFT system independent of the U.S. is critical for the continent.
This could be good for Cryptocurrency
In the past, the Iranian government has initiated moves to ban cryptocurrency. Today, the story has changed. Indeed, the US has cut them off from doing business with the rest of the world. As a result, their currency has depreciated in value. Since they cannot participate in international trades, they are turning to cryptocurrency. No doubt, the rejected stone has become the cornerstone. Now, they can only trade with their allies.
Government official supports the idea
Mohammed Reza Pourebrahimi is the head of IPCEA (Iranian Parliamentary Commission of Economic Affairs). He said that Russia has accepted to continue doing business with them. While Russia will do business with them, they will employ cryptocurrencies in doing so. Pourebrahimi noted that IPCEA has already instructed the central bank to develop a proposal for crypto use. Iran hopes to use cryptos to bypass the dollar and U.S.-controlled SWIFT system. However, he expressed delight that Russia is playing along.
U.S. influence in Iran
Well, the U.S. is increasingly asking many companies to pull out of the country. One of the countries that pulled out of Iran is French energy conglomerate Total. After withstanding for a while, the company gave in, pulling out of the country. The company has suspended the gas pipeline operations it has with the Iranian government.
Even though SWIFT is based in Belgium, the U.S. has imposed sanctions on Belgium. As a result, the company is compelled to comply with the rules set for it by the U.S. government. Apart from Iran, Venezuela and Turkey have economic crises.