TASS — Russian Central Bank plans to create new payment system in 2017 instead of BESP System

The Russian Central Bank in 2017 plans to launch a pilot project, creating a new payment system instead of the current BESP system (Banking Electronic Speed Payment), the Deputy Chairperson of Russian Central Bank Olga Skorobogatova said Friday at the International Banking Congress. 

"The current payment system was created decades ago. Of course, it has evolved, but it no longer meets the needs of market participants and banks. Therefore, the new payment system will handle accounts directly through the payment processing network of the Russian Central Bank. It will be created in 2017," she said, noting that the Central Bank is in the initial stage of the project.

TASS
Russian Central Bank plans to create new payment system in 2017 instead of BESP System

RT — Russia and China to open joint e-commerce platform in summer

Russian online payment system Yandex.Money is to start processing payments for China’s online platform TradeEase, which is aimed at increasing cross-border trade between the two countries.

The project is expected to have a turnover of $830,000 in the first 3 months after it starts in the summer.

The platform will be launched by China’s PayEase payment service, Bank of China, China’s Heilongjiang province and the border city of Suifenhe, Vedomosti reported on Thursday...

Why are alternative payment systems important. Because money flow is source of financial extraction (fees). So far the West, and in particular the US ("Wall Street") and UK ("the City") have dominated these flows internationally. Now that is being cut into by alternatives.

In late 2014, Russia and China agreed to switch trading settlements to local currencies to reduce dependence on the US dollar and create an alternative within the global financial system.

RT
Russia and China to open joint e-commerce platform in summer

Joshua Wojnilower — The Role of Money in Mainstream Macro

Based on my initial exposure to advanced macroeconomics, it appears true that “money would be at most a unit of account, but never a store of value.”

Bubbles & Busts
The Role of Money in Mainstream Macro
Joshua Wojnilower

The functions of money are 1) unit of account, 2) medium of exchange, 3) store of value, and 4) method of deferred payment. That is, 1) nominal price and record, 2) settlement of transactions in a payments system, 3) saving vehicle, and 4) credit. Mainstream macro does what?

Winterspeak — Analogy by Reason

One needs to look more carefully at the function of a bank, and see that they are at the intersection of two distinct activities. Muddling the actors in these two activites, and ignoring the correct role of Government, leaves you in a horrible pickle where you curse FDIC insurance and argue that Grannie should pay for Blankfein's sins. I exaggerate, but not by that much.

The two activities are 1) payment clearance and 2) credit decisions.

Winterspeak
Analogy by Reason