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US threatens to cut off China from SWIFT

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This is a good threat from the Trump admin.  Might be enough to get China to stop colluding with NK and finally bring them to heel.  Uncertainty over nuclear war is no good for anyone...especially crypto.  As crypto doesn't tend to work well when all the power goes out. (EMP)

Techwise, it would seem to be a double-edged sword.  On one hand it further cements SWIFT as a critical and trusted global financial network.  On the other, it could force China to seek other options.  My guess is this won't happen...at least not all at once.  I'd expect China to fold to this threat if USA stands firm.  It would crush China economically.

As another observation:  @Max Entropy has some very interesting theories in this thread that are worth exploring.  Could be tin-foil hattery...could also be onto something.  As was said..."nothing is ever what it seems."

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@Coinseeker

I think SWIFT is dead man walking... it was fine in the past but the tech does not do enough today. It is not a speed thing or a Nostro account thing, but rather integrating ledgers for global control and balance... of the economies. On one level this could be good but on other levels - terrible - as it further concentrates pooled assets.

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2 hours ago, Coinseeker said:

This is a good threat from the Trump admin.  Might be enough to get China to stop colluding with NK and finally bring them to heel.  Uncertainty over nuclear war is no good for anyone...especially crypto.  As crypto doesn't tend to work well when all the power goes out. (EMP)  

It's a hollow and divisive threat characteristic of a man who shoots from the hip.  

 

 

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12 minutes ago, tartankiwi said:

It's a hollow and divisive threat characteristic of a man who shoots from the hip.  

We owe Trump much gratitude for hammering another nail in Swift's coffin!

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4 hours ago, zerpdigger said:

it would crush the USA the same way!

And we deserve it.  This is what we get for reverting back to a thinking that it's ok to support slavery as long as we get cheap products out of it.  Ironically, the arguments today are the same from the slave owners in the 1800's  -->  "But what about our economy!?!".  We should be ashamed and more importantly...we should stop it. We're better than that.  Time to start making things right here in America again and/or paying the true costs of products that come from workers who get fair wages and fair treatment.  That's what a competitive free market should look like.  China is anything but.

Edited by Coinseeker

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38 minutes ago, lucky said:

We owe Trump much gratitude for hammering another nail in Swift's coffin!

Haha, Perhaps... but in a hypothetical world were Trumps threat plays out... what inclination would China have to continue exploring the possibilities of using  American made XRP?  

They'd just copy it and make their own version. 

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35 minutes ago, tartankiwi said:

Haha, Perhaps... but in a hypothetical world were Trumps threat plays out... what inclination would China have to continue exploring the possibilities of using  American made XRP?  

They'd just copy it and make their own version. 

Just like with Bitcoin, the value proposition of XRP lies only partly in the (copy-able) technology. The main value is in the network that is using the technology. You can copy ripple's open source software in just five minutes, convincing banks and businesses worldwide to use it, is another cookie. I don't see the Chinese pull that off, or even try that.

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56 minutes ago, lucky said:

Just like with Bitcoin, the value proposition of XRP lies only partly in the (copy-able) technology. The main value is in the network that is using the technology. You can copy ripple's open source software in just five minutes, convincing banks and businesses worldwide to use it, is another cookie. I don't see the Chinese pull that off, or even try that.

Exactly,

I hear this scenario thrown out a lot, the potential for China to copy Ripple/XRP. I don't think the people who say this fully understand just how Ripple and XRP work. You can't just create a coin for international transfers.....

The problem for China would be that they would still need to build out liquidity for their own "coin" and have it traded internationally on many exchanges near the receiving bank. If they isolate themselves it wont matter how great their coin is, if it isn't liquid and being traded then it fails at being able to provide instant settlement. You must have someone on the "other end" willing to buy the coin in the local currency associated with the receiving bank.

Also like you mentioned you'd still need to convince banks and business worldwide to use it.

 

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I'm happy to admit that my knowledge is still developing with XRP - and maybe to say they'd just make their own version is overly simplistic or wrong.  

But the fact is, the Chinese aren't choosing to isolate themselves.  They've agreed to the sanctions proposed by the US/UN - yet the Trump administration still feels the need to issue threats to the second largest economy in the world.  Furthermore, XRP is still in its infancy in terms of becoming a standard.

If tensions continued to rise for whatever reason and that threat was followed through, then the disruption would be worse than what we saw during the 2008 crisis.  I can't see that being beneficial to our investments.  

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