The weaponization of currencies; promoting the world to build parallel systems.

[CTO114]

Prior to recent developments, we've gotten used to seeing currencies as economic tools; a medium of exchange and store of value.
In recent times though they've become manipulative tools for geopolitical power. These tools are being weaponized as strategic tools in global political disagreements.

Looking at the curious case of strong currencies like the dollar; a mainstay on the international community markets and global banking networks for payments.

Countries who control these currencies have the power to influence outcomes with just minimal pressures like; sanctions and financial exclusions instead of going down the expensive route of exerting military force.

 Such a country being targeted would have a serious difficulty in even conducting international trade.

However when such financial tools are used against these countries, parallel systems are surely introduced.
Development of alternative payments, increase in Bilateral trade, and even the popular de-dollarization and digital currencies.

Hence weaponization of currencies prompt building of parallel systems. It has surely come to stay as the other side of the chess board, and it isn't such a bad thing!

[abhiseshakana]

So we can say parallel system as alternative system if western power use it as geopolitical pressure tools which clear real purpose is avoid sanction, keeping international trade and settlement working and decrease asset freeze possibility. This parallel system is not intended replace dominant system but only alternatife if the worst happen. Just call it backup financial architecture. In todaqy world many narative and agenda of dedollarization trade settlement which was initiated by China and Rusia, even CHIPS and SPSF will not replace SWIFT but it give facility for international payment settlement. Through economic block alternative its member try to enlarger trade between member and decrease USd dependence and they also create their ownd development bank which main pourpose building without US institution domination. Many party try to find alternative as survival or risk management mechanism against US weaponized currency strategy using CBDC and also increase gold reserves and reduce USD reserves.

[joniboini]

As far as I understand it, sanctions and the likes of them don't rely on which currencies a country uses. It relies on bigger financial power, political power, and so on. What I mean is even if the country giving sanctions doesn't use the currency with the highest volume in the world, they can still disrupt the other parties if they hurt the market effectively. If A needs sugar and B controls most of them, B can exert power over A easily, for example. CMIIW.

That being said, I do agree that relations with other nations are useful in this case. At the end of the day, it's about interest.

[WillyAp]

That was the issue that brought many countries up against the US.
Once the US started to pursue or pressure countries the sympathy went away.

[Ambatman]

Well Dollar may seem strong because it's a global reserve
The dominant currency in international trade
Thank to coming out stronger after the Great Depression.

No country would want to be reliant on another in the long run and they have seen the cost
Bitcoin is a nice alternative
Existing outside the status quo
But I feel such economic and currency warfare than literal bombs and nukes.

[aylabadia05]

Fiat seems like a currency created for war calculations. To measure how much has been spent on a single explosion, allowing those in power and vested interests to print even more. Fiat is not a currency of peace, even though the world uses the word "peace" as a uniform.

Your statement demonstrates to those who worship fiat that their long-held belief in the system is wrong, especially those who continue to claim that digital currency systems are weaponizing crime.

[Fortify]

Countries have always been trying to manipulate their currency to achieve certain aims, this is nothing new. A strong currency can be good for importers but bad for exporters. Ultimately it is also an indication of how your country stacks up in the economic hierarchy of the world, because there is often a correlation on government bonds and how much debt your government can raise at a cheap price. It's an ever changing dynamic, we can see that the US dollar has dropped about 10% under the disastrous leadership of Trump, which has essentially made it more expensive for America to import many things and undermined confidence in their currency, but it will be short lived as they were generally trending upwards besides his awful ideas.