On March 9, sources within China provided new information that validates that the Far Eastern economy is now ready to compete with, or even supplant, the dollar as the sole global reserve currency as early as September of this year. Having already completed a message interchange system that mirrors the same one in the West, the Chinese equivalent of SWIFT is now ready and is expected to be fully operational by the 3rd quarter of 2015, which will allow other nations to transact with the world’s largest economy without the need to purchase dollars as a medium of exchange.
Additionally, there has been a great deal of speculation over the past two years that China might back their currency with gold once they are fully ready to float it as a global reserve, with strong indications showing that at the very least, China will be calling for the use of international letters of credit or trade notes that are backed by gold to help stabilize transactions using this historical form of sound money.
CIPS, which would be a worldwide payments superhighway for the yuan, will replace a patchwork of existing networks that make processing renminbi payments a more cumbersome process. – Zerohedge
Less than a month ago, China’s close partner in Eurasia, Russia, implemented and brought online their own SWIFT alternative after economic sanctions by the U.S. continued into their second year, and information was discovered that pointed towards the NSA monitoring all messages going through the Western controlled SWIFT system.
The average lifespan for any purely fiat currency is around 30 years, with the dollar surpassing this by more than a decade due to its place as the global standard for trade and oil purchases. However, now that the world’s financial system has become saturated with overwhelming debt, and most economies solidly entrenched in currency wars, the world is about ready for a return to sound money and a gold backed currency, which China may be providing to their trading partners within six months.
Full article: China may be ending dollar’s hold on reserve currency as early as September (Examiner)