The glue that holds the global monetary system to the dollar has been the Society for Worldwide Interbank Financial Telecommunications, or SWIFT system. This central bank of central banks works as the medium for currency exchanges, and has been the pivot point for global commodity and energy transactions tied to the reserve currency.
However, because of how the U.S. uses SWIFT to impose economic sanctions on nations it disagrees with, on March 27, Russia has decided to beat Washington to the punch, and implement the creation of its own payment system, and build a foundation that could very soon offer an alternative to SWIFT, and allow nations around the world the chance to move away from dollar and U.S. hegemony.
Now it is Russia's turn to announce it would seek its own "national payment settlement system" following last week's surprising and un-mandated service halts by both Visa and MasterCard, which as Vladimir Putin said earlier today, will be a "bid to reduce economic dependence on the West."
If and when the day comes when Russia and/or China and/or India and/or any other BRICs and other nations who are tired of the hegemony of the fading US superpower, decide to create their own version of Swift, all bets on the reserve currency for the past century are off. - Zerohedge
America's vast control over the global financial system is not tied as much to their military or industrial might, which have both declined over the past 10-20 years, but instead to their control over the global reserve currency, or Petro-Dollar, which forces nations around the world to not only buy dollars to to purchase oil and other global commodities like food, but to also act as a hammer in diplomatic policy by providing the U.S. leverage to use against any nation it deems to be in opposition of its national security goals.
It is ironic that America's economic sanctions on Iran were the catalyst to cause Russia, China, and several other G20 nations to begin the implementation of a new alternative to the current global financial system. By limiting Iran's access to SWIFT in their process of selling oil for dollars to nations throughout the world, it lead not only to the Middle Eastern nation creating an alternative path of trade by selling oil for gold, it also provided the impetus for China and Russia to create a number of trade agreements that facilitated the selling of oil outside of the Petro-Dollar, and sparked a growing push away from the West where America became viewed as a belligerent, and powers in the East were seen as more trade friendly.
The move to eliminate the Petro-Dollar and dollar hegemony is inevitable, as predicted by several well known economists this year alone. And with both Russia and China, along with the occasional assistance from other BRICS nations like India and South Africa, creating similar facilities used in the West like the BRICS bank, gold trade note, and soon, an alternative to SWIFT, the day could be coming very soon where the U.S., like Britain in the 1950's, will be unable to withstand the sea change of nations shifting away from the dollar, and enacting a new monetary reserve system that cannot be used by one nation to impose their will upon others.