De-dollarization heats up
Jonathan Last has a fairly detailed piece (with links to more details) concerning something called mBridge, which looks to be China’s ‘camel’s nose under the tent’ for dethroning the dollar as the world’s reserve currency. Read the whole thing. Here are some highlights: Currently, most of the world uses the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system for carrying out international transactions across multiple currencies. SWIFT runs mostly on the dollar. mBridge works on blockchain. • currencies never have to be converted to USD; • the costs associated with each transaction are comparatively much cheaper; • transactions clear almost in real time. Trump tried and failed to fight mBridge with massive tariffs. He then turned to stablecoins, which aren’t an alternative to mBridge, but just a grift for him and his family. “So in sum: • mBridge is a threat to the dollar’s status as the world’s reserve currency. • Biden tried to derail it by cutting it off ...