Bitcoin’s Future Could Get Brighter as Germany Looks to Move Away From US-Led Financial System
A Bright Future For Bitcoin? Germany May Withdraw From US-Led Financial System
Germany, the biggest economy in Europe, has been thinking about creating an independent payment system free from the United States as US sanctions have recently excluded Iran and Turkey from the financial global system. According to experts, this can be very positive for Bitcoin.
Because of the sanctions imposed by the American government to the two countries, which are now unable to initiate transactions with other countries and restricted from using the global banking system, the German foreign minister, Heiko Maas, has spoken against the US.
According to the politician, it is essential that Europe strengthens its autonomy by creating payment channels that can be independent from the United States. He cites creating a European Monetary Fund and building an independent SWIFT system a the main goals.
Good For Cryptocurrencies
The Iranian government has switched to cryptocurrencies as a way to trade with its allies this year. Mohammad Reza Pourebrahimi, Iran’s Parliamentary Commission of Economic Affairs (IPCEA) head, has stated that Russia used cryptos as a way to circumvent the United States and the banking system, which is controlled by the country.
Many are seeing cryptocurrencies as alternatives to the SWIFT system that is currently in use as a way to bypass the dollar. The Russian authorities are interested in this partnership as a way to circumvent the control of the US’ SWIFT system.
The SWIFT is a very powerful weapon for the United States, as it enables them to block any international bank transfer and this can go against the interests of the European. For instance, Total, the biggest energy conglomerate in France, has been told to pull out of a partnership with a major Iranian gas company or to be cut off from the banking system.
While the SWIFT financial system is based in Belgium, it is open to US sanctions and it does not have the autonomy to resist the United States. Maas’ announcement is the first time in a long time that a major economy calls for a banking system away from the control of the United States.
Cryptocurrencies Used In Turkey, Iran and Venezuela
Cryptocurrencies are already very popular in some countries. As stated before, the US sanctions made them extremely interesting for countries like Turkey and Iran as alternative ways of payment. Venezuela is using them mostly because of the inflation which is destroying the economy of the country.
If the United States ever lose the dominance of the global banking system and/or more countries start to use cryptos, there is a pretty good chance that cryptocurrencies will start to look more appealing to larger groups of investors around the world.