EC Nebraska | mfro629 - 9/2/2024 06:02
They don’t have to with block chain technology they can trade in their currency and it’s easily convertible to any other currency on the planet instantly with minimal fees outside the swift system…. But everyone here says that technology is worthless
Blockchain is just an open ledger accounting system. It's not worthless, but it's not magical either. It can make things like supply chain traceability a lot easier, but it doesn't change the fundamental nature of reality.
Blockchain might be a somewhat easier and more traceable way to convert currency, but it doesn't affect the conversion values. And the conversion values among the BRICS currencies aren't stable.
That's why international trade is easier with the US dollar. Even as badly as we manage the dollar( and there's no excuse for the size of our deficits) the dollar and the Euro are still the most reliably stable currencies available for international trade. (The Loonie might be better, but it doesn't have the volume)
Doing business in multiple currencies adds an additional level of exchange risk. Just ask MAIZING. When he hedges in Chicago and buys grain in Canada, he has an additional level of risk that a US grain buyer doesn't have. Every currency that you add in multiplies that risk.
Now that may not matter much for short-term one-off deals that are delivered and paid for in a few days. But for longer term deals, that are delivered and paid for in increments over months, it's a big deal. For those, there's no substitute for the dollar.
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