Germany to Withdraw from US Finance, Sets Sights on Crypto

Clashes between governments resulted in Germany’s withdrawal from the United States’ financial system following recent sanctions on Turkey and Iran. Due to the US’ implementation of transactional restrictions on the two nations, Germany’s government made the decision to create a new, independent financial institution completely separate and unaffected by US regulations.

Germany’s Exit

Germany, which is one of Europe’s largest economic powerhouses, has considerable control over the world’s outlook on financial and business sectors. While the US market attempts to manage their confusion and apprehension surrounding cryptocurrencies, nations in the EU and around the world have already begun adopting the digital currencies, and creating various systems to control it.  

Heiko Maas, Germany’s foreign minister, said that it is crucial that Europe upholds a sense of autonomy through the establishment of financial systems without the control of the US, according to a recent interview. He believes that this should include the implementation of a monetary fund exclusively for the Union, as well as a separate SWIFT system.

Mohammad Reza Pourebrahimi, leader of Iran’s IPCEA, stated that throughout the last couple of years, digital currencies have become a crucial aspect of the overall financial market. Due to difficulties surrounding the dollar, using crypto can bypass many of the issues that resulted from the US government’s recent sanctions. He said that cryptocurrencies can also act as a replacement for the American SWIFT system. He believes that Russia shares this notion, and that if promoted, the two countries will be the first to exchange goods using digital currencies.

The SWIFT network provides for secure transmissions of information and the conduction of transactions through a code-based system. The US has 10,000 institutional members that utilize SWIFT codes for banking, however many aim to ditch it altogether in the near future.

Affect on Bitcoin

Mega’s developer, Kim Dotcom, has a theory that Germany’s retraction from the US system will have a positive effect on digital currencies, and that in time, it can contribute to the decrease in the value of USD. This may result in cryptocurrencies becoming the most efficient option for exchanges and monetary storage.

Dotcom tweeted that the move is “significant”, and most likely an indication that the EU aims to leave the control of the US on the financial market, and that USD is going to eventually collapse. He also encouraged his followers to purchase digital currencies and gold.

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