Washington fears the loss of the place of dollar: Iran and Venezuela start depending on electronic currencies

Written by Nasser Kandil,

According to many people the US control on the financial markets seems firm and inescapable; the US sanctions against any country, company, or any political or economic party are suffocating. Simply because these sanctions are not dedicated to be applied on the party that it has a relation with the US banks, it is enough to punish those who deal with this party or country for the sanctions to be deadly. During two decades, and after the failure which affected its military projects across the world, Washington developed many controls, legislations, and procedures that increased the efficiency and the severity of the sanctions system, it applied sanctions on every party that does not abide by its directives without justification even if it is an ally, as in the case with Europe, Japan, and Turkey.

In the past two decades the international financial arena witnessed many attempts to establish structures for financial circulation to prevent the subjection to the US sanctions. SWIFT system was one of the financial platforms through which many financial transactions escaped from the American pursuance. It is a global system in Brussels for the interbank systems; but those who were under the US sanctions became under pursuance for dealing with such a system. Therefore, sanctions become a source of financial horror in the banks and in the arenas of financial circulation more than being only direct procedures.

The search for alternatives to financial circulation that are not affected by US sanctions are called by Americans and their groups fraud, since according to them the US sanctions which are imposed on independent countries are a legitimate act, while the only description of it is piracy and finical terrorism, and the search for alternative not affected by sanctions is a legitimate sovereign act. Malaysia which is led by a well-known figure in financial and economic affairs resorted to gold whether in its raw form or through the mintage of Islamic gold coin adopted by the President Mahathir Mohammed.

Because sanctions are intended restriction on the commercial and financial market movement, and because market is stronger than politics, electronic currencies emerged during this global commercial and financial seeking to free the financial circulation from the control of the stock exchange, bank, currency, and government. During the last decade the electronic exchange markets have been developed enormously. These currencies are produced according to accurate and non-penetrable software and are not run by any government, stock exchange, or bank. The electronic exchange market had a broad worrying expansion among the American officials. Within the last days, the Americans talk about the threats of resorting of Iran, Venezuela, and the resistance movements to the market of the electronic exchange market. There are many media reports that ensure these news and review successful experiences about that and talk about the American failure in interfering in the electronic exchange system. At the same time, there are articles in the American financial newspapers explain that the US sanctions system which affects our countries and big markets stretching from Russia, Iran, Europe to Japan has granted the electronic exchange system the opportunities of rapid growth that it would not have had in decades to come, They ask whether the policy of the strict sanctions has accelerated the loss of dollar’s place as an exclusive currency in the global circulation  and the loss of the US banks and exchanges of their status as ruling platforms of every financial circulation in the world.

Translated by Lina Shehadeh,