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  • Russia Gets Ready for Life Without Visa and MasterCard

    From businessweek.com

    Is Russia ready to cut up its plastic? After Visa and MasterCard stopped processing some Russian transactions in response to U.S. sanctions, Moscow says it could launch a homegrown payment system that could be ready in as little as six months, according to German Gref, chief of the country’s largest bank, Sberbank (SBER:RM). Hard as it may be for Americans to imagine life without Visa (V) and MasterCard (MA), jettisoning them wouldn’t be all that difficult. Moscow has been preparing for the past few years to issue an electronic payment card that citizens could use for transactions with the government, such as tax ... (full story)

LOL better for them. Look at what its done for the U.S
The coincidental success is more dangerous than the expected failure
Tough life it is indeed :-)
How they will make onine orders ? LOL
Will this affect payments and withdrawals from Russian based brokers
Yes it has to be. Only transactions through russian payment systems. Confused i am a trader with a russian broker
I don't see a problem quicker they get rid of credit card the better we would all be
people leave, but this thread will go on for ever
load of bullshit. like the americans the whole world doesn't depend on credit cards. americans better buckup.
Quoting BogiFX
How they will make onine orders ? LOL
....Bitcoin?
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
What sort of deal would the US have to pull to make Visa and Mastercard pull out of Russia.. Crazy ..
A genius is born every minute, me I am lucky if my socks match.
Yep…. Exodus is on it…… Bitcoin is the perfect solution
Does that mean if a russian owes a balance on his CC . The debt is wiped clean. ?
  •  Guest
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Seriously, people? You're FX traders, you should know the finance landscape better than this.

Visa and Mastercard are payment processors, not necessarily for credit. (In fact, neither company actually issues debt, they just process transactions for banks that do... as well as debit transactions that have nothing to do with any form of debt at all.)

Most developed countries widely use Visa and Mastercard DEBIT (not credit) cards for everything from buying items online to making transfers to/from Forex brokers, offshore gaming, etc.

So this has nothing to do with debt, just the ability to transfer funds. And mostly, convenience.

Whatever replaces them for Russians (assuming the replacement is actually as viable as they're claiming) would have to offer the same balance of access to credit and/or non-credit ("debit card") transfers.

Plus, whoever issued those cards, even if they're on credit (probably a Russian bank in the cases of most Russians holding these cards) are sure not going to magically forgive the debts of the millions of consumers that made purchases on them.

V and MA had nothing to do with issuing any of that debt except facilitate it as transaction processors.

In short, all the responses above about how great it is for Russians to be rid of consumer debt as a result of this are just stupid.

They're not gaining anything, just losing a lot of cross-border convenience and putting your money at risk if you hold accounts at any Russian-based brokers and your method of deposit/withdrawal from any of them happened to be via V or MA credit or debit cards.

Definitely nothing to celebrate, just unfortunate to see new forms of victims created by backward, short-sighted governments making 19th century decisions.
Russia give a hot tight slap to USA this is a good movement by Russia to freeze US assets and ban US tourists to enter its country also Russia taking good steps to become a independent country in the world.
...the way I see it is that Russians will lose access to US$ and maybe other currency transactions. It will stop tourism (no arguments about why anyone would go there please...). It will stop certain types of cross border trade. I am sure it will have zero effect upon Putin or any of his comrades.
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
Time to SELL US dollar against all pairs because Russia will soon do heavy selling of US dollars to purchase Chinese Yuan since they will be cutting off all ties with US.
Dollar will go down.. adversely GOLD will rule.
Quoting iwishtowin
Time to SELL US dollar against all pairs because Russia will soon do heavy selling of US dollars to purchase Chinese Yuan since they will be cutting off all ties with US.
Do they have enough dollars to do much?
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
Well in one of the largest cash-based economies in the world, that's a bit of a joke to say the least. Anyone who's been to Russia will know that you'll barely see a credit card anywhere.
Quoting Exodus
Do they have enough dollars to do much?
Russia is the largest natural gas exporter in the world and nearly 30% of Europe is dependent on it. How do you think do they receive their payments?

And since Europe is always against Russia when it comes to sanctions, China is the safe heaven to invest for Russia. Pulling out of USD & EUR and moving funds to Yuan will eventually lead to big hit on USD itself
Quoting iwishtowin
Russia is the largest natural gas exporter in the world and nearly 30% of Europe is dependent on it. How do you think do they receive their payments?...
I expected that they received either Euros or Rubles for their gas.
Rubles would be the same as Euros if the purchaser had to source Rubles.
They could choose to use US$, there have been many instances where the parties would prefer not to....
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
Quoting Exodus
I expected that they received either Euros or Rubles for their gas.
Rubles would be the same as Euros if the purchaser had to source Rubles.
They could choose to use US$, there have been many instances where the parties would prefer not to....
I might be wrong but historical analysis shows that whenever US has stressed up ties with a powerful foreign country, USD falls. & Russia is no doubt very powerful.
Quoting iwishtowin
Russia is the largest natural gas exporter in the world and nearly 30% of Europe is dependent on it. How do you think do they receive their payments?

And since Europe is always against Russia when it comes to sanctions, China is the safe heaven to invest for Russia. Pulling out of USD & EUR and moving funds to Yuan will eventually lead to big hit on USD itself
If that's the case, CNY will be much stronger. Questions : How is Russia gonna get CNY? When CNY gets so much stronger, what happens to China economy?
Quoting frx_trader
If that's the case, CNY will be much stronger. Questions : How is Russia gonna get CNY? When CNY gets so much stronger, what happens to China economy?
This is an extract from the link below "Russia threatened to dump its U.S. treasuries if America imposed sanctions regarding Putin’s action in the Crimea."
"Forget Russia Dumping U.S. Treasuries … Here’s the REAL Economic Threat. Specifically, Sinclair says that if Russia accepts payment for oil and gas in any currency other than the dollar – whether it’s gold, the Euro, the Ruble, the Rupee, or anything else – then the U.S. petrodollar system will collapse."

http://beforeitsnews.com/economy/2014/03/big-move-russia-returns-favor-sees-chinese-yuan-as-world-reserve-currency-video-video-2606552.html
It's a really silly and childish form of sanction. What next, no paypal or eBay in Russia?

Quoting Exodus
...the way I see it is that Russians will lose access to US$ and maybe other currency transactions. It will stop tourism (no arguments about why anyone would go there please...). It will stop certain types of cross border trade. I am sure it will have zero effect upon Putin or any of his comrades.
Russia and China together taking a huge dump in USA assets could get interesting. The main reason the USA goes to war or supports wars from a proxy position is to protect the petrodollar.


Quoting iwishtowin
This is an extract from the link below "Russia threatened to dump its U.S. treasuries if America imposed sanctions regarding Putin’s action in the Crimea."
"Forget Russia Dumping U.S. Treasuries … Here’s the REAL Economic Threat. Specifically, Sinclair says that if Russia accepts payment for oil and gas in any currency other than the dollar – whether it’s gold, the Euro, the Ruble, the Rupee, or anything else – then the U.S. petrodollar system will collapse."

http://beforeitsnews.com/economy/201...o-2606552.html...
Quoting Squeeze
It's a really silly and childish form of sanction. What next, no paypal or eBay in Russia?
When the Americans set their mind to something they can wreak significant damage. Look at what they just did to the Swiss banking industry.
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
Golden rule of business, he who has the gold makes the rules...

Oil and gas rules this position, you can't hurt the modern Russia. Maybe thirty years back when the globe was less reliant on their supply of energy and less inter related globally in terms of banking, but not now. These petty sanctions will have very little effect, its nuisance and inconvenience. Want to really go ahead with a sanction? Ban the purchase of their oil and gas like that imposed on Iran a while back..yeah right...they haven't got the nerve.


Quoting Exodus
When the Americans set their mind to something they can wreak significant damage. Look at what they just did to the Swiss banking industry.
Quoting Squeeze
...Ban the purchase of their oil and gas like that imposed on Iran a while back..yeah right...they haven't got the nerve.
....nor the alternative supply.
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
Correct. And fracking its way to export might be a pipe dream for the USA.

Quoting Exodus
....nor the alternative supply.
Quoting iwishtowin
This is an extract from the link below "Russia threatened to dump its U.S. treasuries if America imposed sanctions regarding Putin’s action in the Crimea."
"Forget Russia Dumping U.S. Treasuries … Here’s the REAL Economic Threat. Specifically, Sinclair says that if Russia accepts payment for oil and gas in any currency other than the dollar – whether it’s gold, the Euro, the Ruble, the Rupee, or anything else – then the U.S. petrodollar system will collapse."

http://beforeitsnews.com/economy/201...o-2606552.html...
Blind and stubborn - the most fatal inheritance.
Seek and you will find. Knock and it will open unto you.
At Zurich polytechnic, one of the toughest, students focus on WHY and not HOW a certain thing works. It is extremely expensive but China has not try to save money on education here. Chinese students are probably the largest foreign population at the University.. Singapore adopted the Swiss model for their country.

How to collapse the petrol dollar . Pay will any currency other than in dollars.

If one knows why, then one will find more means to make it collapse or find an alternative to save the situation. Listen and doing takes you on to only a short distance.
Asking why opens our minds to explore the infinite.

TRY this

http://www.youtube.com/watch?v=nB8GmcRV_yg

http://www.youtube.com/watch?v=0sV4ppmz0wA
I also dont use credit card and i dont own a credit card. I dont want my money spending to be traced in some database. I use only cash for all daily expenses.
Quoting Neqrotik
LOL better for them. Look at what its done for the U.S

Exactly...great comment.

In our current economical environment here in the US, evidently nothing will bring corruption down. The government won't do anything because the banks have bought crucial government employees.

The only way the US removes corruption is to stop using the services of the banks...a boycott.

But that won't happen because Americans now have become soft. No morality, no ethics, no values, just greed.

Russia is acting like it has a leader...scary in light of its own corruption problem.
Everything easy was hard at first
What nonsense, no one is off the grid who has even the most basic bank accounts. Htf do you trade FX then? Do you deliver your bucket shop broker sack loads of vegetables? Fukcin dunce.

Quoting allex82
I also dont use credit card and i dont own a credit card. I dont want my money spending to be traced in some database. I use only cash for all daily expenses.
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
Spreadbetter. LMAO
Most of Europe doesn't use credit cards. In fact, 5 years ago only a few had them. Today most European banks offer one to their clients, but my point is that it's possible to live without one.

Also, if you read the 1st paragraph it says Russia will create it's own payment system.
I found a penny today. That's +100 pips for me.
without credit card, travel warning, soons maybe facebook banned for russian, etc.

i think what U.S want is make Russian people not comfortable, so they gonna protest their own goverment, so Putin will get pressure from it.
and make him reconsidering about crimea negotiation.

this sanction maybe effective by now, but this will not last longer. Others country, like Korea and Iran also get some international sanction, and they still survive until now.
And maybe next few years some others country make trouble and get sanction too.

Root of large destruction start from here, US is isolating many country, to many.
In time by time this isolated country gonna trying to connect again to international market lets say, for selling oil, shoes, rocket, etc. but fail due international sanction.
what this isolated country can do is trade with others isolated country, make their own market. How they connect and trade each others is only about time.

Theres gonna happen some gap, differential from international market and isolated market. yes.. isolated country should be less competitive compared to international market. they should be weak, like virus in glass tube. but how if this group of cell growing strong ? they gonna mutating, new system, new power. meanwhile international market more unstable. US itself we know is powerful country, but we all know in economy sector, uncle Sam not so wealthy anymore, thats maybe reasson they avoid war, even with weak country like Syriah.

and if this condition keep continue, in very long term, isolated country can be more stronger than US+international country.
what will happen is just like when virus more stronger than antibody.

from my opinion, US should be reconsidering effect and effectivity of international sanction.
take what you can take, before market take it back
I wrote that Russia has already begun to create its own payment system. Why does my post once again been removed?
Quoting Aspart
I wrote that Russia has already begun to create its own payment system. Why does my post once again been removed?
Weird I agree. I'll try it to see what happens - Russia has already implemented its own payment system, so screw Visa and screw Mastercard, the whole country will be far better off without them.
Quoting cat
Weird I agree. I'll try it to see what happens - Russia has already implemented its own payment system, so screw Visa and screw Mastercard, the whole country will be far better off without them.
This situation applies not only to the payment system. All sanctions against Russia are her only benefit! And let example is the payment system. The U.S. and Europe do not understand all that is happening, but we Russians want to say thanks to all! ))
Quoting Aspart
I wrote that Russia has already begun to create its own payment system. Why does my post once again been removed?
2 of mine were censored also
Quoting highway
2 of mine were censored also
It appears that the number of posts that Russians can make on the FF website is being sanctioned....
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
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  • Posted: Mar 25, 2014 12:38am
  • Submitted by:
     Newsstand
    Category: Entertainment News
    Comments: 41  /  Views: 10,827