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DID YOU KNOW?  What is a Payment System?


What is a payment system? By definition it is “Any system enabling the transfer of funds between parties”. These systems are designed to provide a network that enables the financial institutions, worldwide, to send and receive information about financial transactions in a secure, standardized and reliable environment.

In the high volume, large amount, cross-border transfer of funds all funds must pass through a clearing protocol that adheres to all international compliance and laws this process identifies the source of the funds, as well as the destination of the funds, as legitimate and non- criminal in nature.

A “clearing house” uses a payment system for the settlement of these security transactions. Most payment systems are electronic and usually involves the Federal Reserve in some way, especially if the transaction is settling in U.S.D. (All transactions settled in USD are cleared through C.H.I.P.S. (Clearing House Interbank Payment System).

The prominent system worldwide currently being utilized, and what most people recognize and identify with, is the S.W.I.F.T. system. (The Society of Worldwide Interbank Financial

Telecommunication). SWIFT was formed in 1973 by six major international banks that formed a cooperative society to operate a global network that would transfer financial messages.

SWIFT relies on a series of messages that are assigned a code number. There are hundreds of different types of SWIFT codes (messages). Each individual code (message) identifies the particular type of funds being transferred. Every day, nearly 11,000 SWIFT member institutions send approximately 33.6 million transactions through its network. Every day!

When you sign on to be a SWIFT member, you acknowledge that all the rules and regulations of the system will be followed and adhered to. This includes honoring imposed sanctions on any particular country. When the U.S. imposes a sanction on a country, they can effectively interfere with that country’s ability to engage in international trade.

To combat the capacity of interfering with a sovereign’s ability to engage in their own international transactions, countries around the world have developed their own unique payment systems outside the control and interference of the FED (U.S.).

The Peoples Bank of China (PBC) developed the C.I.P.S (Cross-border Interbank Payment System). Launched on Oct. 8th 2015. CIPS provides clearing and payment services for financial institutions in the cross-border and off-shore RMB (renminbi /yuan) business. (Designed for transaction settling in RMB.)

In 2017 Russia launched their own version of the SWIFT international payment system the “System For Transfer of Financial Messages” or “SPFS”. (settles in rubles). In 2018 Russia included other international partners in their SPFS system and as of Oct 2019 the SPFS has been adapted by multiple countries including eight banks from the EAEU (Eurasian Economic Union)

The BRICS nations (Brazil, Russia, India, China, South Africa) are also considering a “BRICSPay system” , again as a way to avoid using SWIFT and use of the US dollar. The BRICS are also planning to develop a single payment transaction system between the member countries which could be carried out in a still-to-be-developed “BRICS cryptocurrency.

There are literally hundreds of various payment systems being utilized throughout the world that circumvent the U.S. controlled SWIFT system. The reason for this education is to make people aware of the complexity of a GCR/RV. Even if the event were to trigger the reality is “the funds have to move to be usable”. The introduction of quantum mechanics and calculating (QFS) along with decentralized block-chain technology will speed up the clearing and settlement process to more of a real-time occurrence, but it also as to integrate with all the various global payment systems to be effective.

The SWIFT system itself, technologically speaking, is an effective system and any flaws in the system can be remedied with the above mentioned cures. But what cannot be remedied with technology is the ability of the U.S. to force its economic and political agendas on the economies the world.

Recent narratives have stated that the SWIFT system is to be dismantled and removed by Sep 1st 2020 so that the GCR can engage. Well, whatever is to replace it better have the capacity to pick up the slack of 33.6 million transactions per/day. Instantly! Or we risk a potential for total global economic chaos.

Moral of the story? Be patient and let them get it right. Once it goes off, there will no putting the genie back in the bottle.