There has been so much legislation going on in the past couple of years to make sure a lot of financial reporting happens to the US, to an extent that some chinese instutions flat out refused taking payments from US based payment providers simply to avoid that reporting burden.
We would be kidding ourselves if we denied the geopolitical implications of that reporting burden. For Taiwan for example every single international transaction is proxied through a US bank.
I believe the geopolitics behind it is to ensure that the US is able to enforce their international sanctions. Anything bypassing that definitely a thorn in their eyes.
However we shouldn't forget that there are those that would like to reduce the reliance on those systems. So while US banks may cut off access other countries may not.
EDIT: yes, the US is not the only country doing that. Iran for example while bartering with China also completely banned cryptocurrencies for the longest time. Then finally allowed blockchain applications but only if they are used for non payment purposes.
We would be kidding ourselves if we denied the geopolitical implications of that reporting burden. For Taiwan for example every single international transaction is proxied through a US bank.
I believe the geopolitics behind it is to ensure that the US is able to enforce their international sanctions. Anything bypassing that definitely a thorn in their eyes.
However we shouldn't forget that there are those that would like to reduce the reliance on those systems. So while US banks may cut off access other countries may not.
EDIT: yes, the US is not the only country doing that. Iran for example while bartering with China also completely banned cryptocurrencies for the longest time. Then finally allowed blockchain applications but only if they are used for non payment purposes.