Sino-US trade frictions are further escalated, can cryptocurrencies promote the cross-border payment revolution in international trade?
On August 14, 2017, the US Trade Representative Office issued an announcement to officially launch an investigation into China on the grounds of "China's violation of intellectual property rights in the United States", that is, the 301 investigation, unilaterally provoked a trade war against China.
On September 18, 2018, the US government announced that it would impose tariffs on approximately US$200 billion of goods imported from China. The tariff rate will be 10% from September 24, 2018, and will be imposed on January 1, 2019. The tariff rate has increased to 25%. The unilateral trade and hegemonism of the US led to the escalation of Sino-US trade frictions.
On May 8, 2019, the Office of the US Trade Representative announced that it plans to raise the tariff of 200 billion US dollars of Chinese exports to the United States from 10% to 25% on the 10th, and will start to add 25 to the remaining US$325 billion. The relevant procedures for the tariffs of the US tariffs, the United States completely disregarded the actions of the 11th round of economic and trade consultations between China and the United States, which led to the further escalation of Sino-US trade frictions.
On May 13, CCTV News Network International commented that China has prepared for a comprehensive response and is unwilling to fight, but it is not afraid to fight and has to fight if necessary. In the face of the soft and hard hands of the United States, China has already given the answer: talk, the door is open; fight, accompany the end!
China is so comfortable in dealing with it. The bottom line comes from China's rapid economic development in the past 40 years of reform and opening up. At present, China has become the world's second largest economy and the second largest foreign capital inflow country with a total GDP of over 900,000. In the future, the huge domestic consumer market will continue to be healthy and growing at a high rate.
With China’s remarkable international status, international influence has increased year by year, and there is no fear of the unilateral tradeism of the United States. However, in the context of escalating trade eradication, it is worthwhile to think deeply that, on a global scale, There are many developing countries and backward countries whose economic volume is unable to withstand the economic sanctions of the hegemonic power of the powerful countries. The unilateral economic sanctions of the powerful countries will seriously affect the economic development of small-sized countries and the national basic life, even to the country. The economy has caused a fatal blow.
The US sanctions against Iran are bloody cases.
In 2012, the United States launched economic sanctions against Iran. The important measures were to block Iran’s cross-border payment settlement system and stop Iran’s access to the SWIFT international fund clearing system. This move undoubtedly cut off Iran’s financial lifeline.
Under normal circumstances, a cargo tanker can carry $100 million worth of crude oil. The law uses the SWIFT international fund clearing system. Cross-border settlement of crude oil export trade is difficult to complete. No Iranian side will be able to trade settlement accounts with other countries. Other ways to bypass the banking system settlement, using cash, gold or barter, will undoubtedly reduce the bargaining power of Iranian crude oil exporters on trade orders, forcing Iran to lower crude oil export prices, and even temporarily stop crude oil exports.
For Iran, which relies heavily on oil exports, it is impossible to conduct crude oil export business. The blow to economic development is undoubtedly fatal, and it has boosted Iran’s domestic currency depreciation and inflation.
In addition to the impact of large-scale international import and export trade, the lives of the Iranian people have also been directly affected; Iranians working and living in the United States and Europe cannot transfer money to domestic family and friends through bank remittances, and study abroad. Iranian students are also unable to receive the living expenses and tuition fees sent by their families. They can only rely on manual cash to send money.
Although the SWIFT international fund clearing system is a clearing coalition composed of banks of various countries, its system and code are fully controlled by the US CHIPS dollar large-value clearing system, which means that the SWIFT international fund clearing system is an absolute discourse power in the United States. Centralized Alliance.
In the centralized SWIFT international fund clearing system, if the United States continues to launch economic sanctions against a country for its own benefit, the SWIFT international fund clearing system will cut off the country’s international capital flows and be cut off across borders. The countries that transfer money have almost no power to fight.
Is there a scientific feasibility solution to create a new decentralized cross-border payment system?
The answer is yes.
At the current level of technology, blockchain technology is a new application model for distributed data storage. Whether it is in the payment settlement field or in cross-border settlement, it has a unique advantage. It is to build a decentralized payment settlement system and promote The best technical solution for the international trade cross-border payment revolution.
Decentralization is the most significant feature of blockchain technology and is also the biggest advantage in the field of payment and clearing.
A payment system based on blockchain, all data is distributed and stored, no one can tamper with it, ensuring transparency and security of payment, and it is not unilaterally artificially blocked; its network structure will be distributed nodes, no longer needed Centralized third-party clearing structure, all nodes are open and transparent, and rights and obligations are equal. Any single node in the blockchain network cannot affect the normal operation of the entire payment system.
Under the decentralized blockchain payment clearing system, each transaction is recorded by other nodes in the system. All nodes on the network jointly verify the authenticity of the payment transaction. Once the payment transaction is verified and confirmed, the transaction is confirmed. The data is permanently recorded in the blockchain; a single node attempting to modify the payment data is invalid and is not recognized by the network.
Therefore, the blockchain payment clearing system has very high data stability and reliability in terms of security.
At the same time, because the participation of third-party intermediate clearing institutions is no longer needed, the timeliness of cross-border payment can be geometrically increased from the traditional electronic remittance, almost real-time settlement.
Traditional cross-border remittance business, because the remittance process involves a large number of participating institutions, and the laws and regulations of different countries and exchange rates are different, a cross-border remittance often takes 7 days to arrive, if there is a holiday, then After the delay, there will be no more than 10 days to arrive.
In the blockchain transfer scenario, the transfer does not pass through any third party, and the asset is transferred between peers. In the case of a smooth network, it can be reached within a few seconds.
It is based on the many pain points of current cross-border payment and the advantages and broad application prospects of blockchain cross-border payment. At present, many teams around the world are promoting R&D to promote cross-border transfer of blockchain. Alibaba has realized the blockchain from Hong Kong to the Philippines. The application of transfer; currently, cross-border payment of blockchain has not yet obtained large-scale commercial applications, and the prospect of cross-border payment of blockchain needs to be verified by the market.
Source: ALicoin Research Institute