Last week we wrote about Russia finally completing its alternative payment system that now makes it virtually invulnerable to any economic warfare performed by the U.S. through the global SWIFT system. In fact, it has been this exact type of sanction that has stifled economies in Iran, Iraq, North Korea, and even the former Soviet Union during the Cold War.
But while on the surface Russia has indicated that their primary purpose for implementing their new payment system was to defend against the U.S. cutting them off from access to dollars through SWIFT, the fact that they have created several different new economic coalitions over the past five years means that the now have the power to do even more than just protect against U.S. economic aggression.
In fact, since they have also become the world's top energy producer and distributor, as well as one of the largest holders of gold on the planet, Moscow is prepared to even use their new payment system to collapse the petrodollar and turn the tables on America's domination through its 40+ year control over the reserve currency.
During a meeting with Russian President Vladimir Putin last Wednesday, Central Bank governor Elvira Nabiullina stated that:
“There were threats that we can be disconnected from SWIFT. We have finished working on our own payment system, and if something happens, all operations in SWIFT format will work inside the country. We have created an alternative.”
The alternative system, known by its abbreviation SPFS, is analogous to SWIFT for financial transactions taking place in Russia and has been in the works for years, with 330 Russian banks connected over a year ago. This number will likely increase now that it has been successfully developed and implemented. Nabiullina also added during the meeting that 90 percent of ATMs in Russia are now compatible with Mir, a Russian version of the Visa and Mastercard payment systems that is used domestically. However, the SPFS is still far from perfect, not operating from 9 pm to 5 am Moscow time and with a transfer cost of 5 cents per transaction.
Whether Russia’s aim in creating and implementing an alternative to SWIFT is based chiefly on protecting its own economy or not, the move further illustrates how the concentration of international power is steadily moving eastward. Along with parallel efforts by China and other BRICS nations, U.S. and Western economic hegemony is unraveling, a stark reality that U.S. interests – particularly those of the “deep state” – are desperate to avoid. - Mint Press News
According to an article published yesterday by Sputnik, progress made in promoting bilateral trade in yuan is the first step towards an even more ambitions plan — using gold to make transactions:
The clearing center is one of a range of measures the People's Bank of China and the Russian Central Bank have been looking at to deepen their co-operation. One measure under consideration is the joint organization of trade in gold. In recent years, China and Russia have been the world's most active buyers of the precious metal.
On a visit to China last year, deputy head of the Russian Central Bank Sergey Shvetsov said that the two countries want to facilitate more transactions in gold between the two countries.
The possibility of trading in gold has been discussed by Russian officials over the last year. Last April, First Deputy Governor of the Russian Central Bank Sergey Shvetsov told TASS:
“BRICS countries are large economies with large reserves of gold and an impressive volume of production and consumption of this precious metal. In China, the gold trade is conducted in Shanghai, in Russia it is in Moscow. Our idea is to create a link between the two cities in order to increase trade between the two markets." - Russia Insider