International Buffer Zones: Exploring Dual Financial Systems

Two men walk into a bank. One leaves with a neat paper envelop with 10 bills while another leaves his bank with a gigantic brown paper sack of bills cuffed under his arm. They both took out the same value equivalent. The difference is that the FOREX decided whose money is worth more. A definitive indicator that the average citizen and domestic system is left unprotected from the financial machinations of other economies.

Now that we know there are better options that can protect local industry and better reflect currency, we can create systems that work. Not only can nations create better systems, but also protect against the weaponization of currencies and systems.

We also have a visual on what it means to fight back against trade-targetted economic warfare. China’s survival of the US trade war meant to crush its growth, acts as a primer on how other economies may begin to pivot beyond dark hand actors in financial and trade sectors. The only way to protect industries and economic health–and for many to retain their legitimate regimes, the means of exchange may need to change. A world reserve currency only acts to ground the growth of those pegged currencies and economies in times of inflation.

But let’s imagine a dual interfacing system for each nation, scrapping the reserve currencies. A unique system with two tracks: one serves the domestic market the other interfaces with the international market. Both tracks interface through regulated integration into the local track. In this way the international track serves as buffer corridor to trade and transfers, protecting the local system from shocks and financial fluctuations. A dual purpose financial system can interface for the purpose of bringing goods and services into the nation on one tier; while locally, citizens and domestic industry operates on another tier. The place of interface may be managed by cyber security experts, trade ministries and product safery boards. In other words, nations may create a firewall that protects them economically.

Systems can be both separate and interfacing at the same time and may be shunted in the case of international aggrevations. Nations can protect their financial futures and choose trade partners to interface with the international tier, without molestation of the local tier. No one nation or group of nations could attempt to financially hamstring a competitor or slow down growth. We must remember that currency (whether digital, blockchain or fiat) is nothing more than a system of exchange.

While not all international interactions can be be guaranteed to be pleasant. Nations can begin thinking forward, with the future of their industries, state and countrymen in mind. The stability achieved through such systems may have benefits on the social level allowing for more peaceful and authentic exchanges. Dual systems that protect the integrity of trade mechanisms are vital. National upheavals may be reduced and stability may be achieved in the area of production, manufacturing and social services.

The possibilities are endless, and the architects of those future systems have the capacity to catapult their nations into astronomical growth. There can be win-win systems, however, not without losing the old one.

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