4/22
Telex - not just the machine, but the system it worked on - was the network used to send written messages between businesses - and most commonly between banks. #velshi
Telex - not just the machine, but the system it worked on - was the network used to send written messages between businesses - and most commonly between banks. #velshi
5/22
So, between 1930 until the 70’s, if you needed to transfer or “wire” money to someone - you were using Telex. Without getting too technical, this is how the process worked: you would go to the bank or business - maybe it was an insurance company. #velshi
So, between 1930 until the 70’s, if you needed to transfer or “wire” money to someone - you were using Telex. Without getting too technical, this is how the process worked: you would go to the bank or business - maybe it was an insurance company. #velshi
6/22
Type out the message on the keyboard. The message was transferred to a piece of tape, which was coded. Then you’d use a rotary phone to call the bank receiving your transfer. When they answered, your message went through a tape reader. #velshi
Type out the message on the keyboard. The message was transferred to a piece of tape, which was coded. Then you’d use a rotary phone to call the bank receiving your transfer. When they answered, your message went through a tape reader. #velshi
7/22
The person on the other end manually took down the message and the rest of the transfer goes on from there. This was far from a fool-proof system. It was hampered by low speed and security concerns. #velshi
The person on the other end manually took down the message and the rest of the transfer goes on from there. This was far from a fool-proof system. It was hampered by low speed and security concerns. #velshi
8/22
Senders had to describe every transaction in detailed sentences, which were then interpreted and executed by someone else. It made for a perfect storm for human error. #velshi
Senders had to describe every transaction in detailed sentences, which were then interpreted and executed by someone else. It made for a perfect storm for human error. #velshi
9/22
Then in 1973, the #SWIFT system was created. It stands for the Society for Worldwide Interbank Financial Telecommunications. It’s a messaging system that links more than 11,000 financial institutions in over 200 countries and territories. #velshi
Then in 1973, the #SWIFT system was created. It stands for the Society for Worldwide Interbank Financial Telecommunications. It’s a messaging system that links more than 11,000 financial institutions in over 200 countries and territories. #velshi
10/22
And it’s the reason why transferring money overseas is so easy these days. The difference between SWIFT and Telex is in the technology. #SWIFT uses unique codes that are sent from bank to bank. #velshi
And it’s the reason why transferring money overseas is so easy these days. The difference between SWIFT and Telex is in the technology. #SWIFT uses unique codes that are sent from bank to bank. #velshi
11/22
If you’re a Chase customer in New York and need to send money to a friend who banks at a Banque Populaire branch in Paris – all you have to do is walk into your local Chase branch with your friend’s account number and the #SWIFT code of the Paris branch. #velshi
If you’re a Chase customer in New York and need to send money to a friend who banks at a Banque Populaire branch in Paris – all you have to do is walk into your local Chase branch with your friend’s account number and the #SWIFT code of the Paris branch. #velshi
12/22
Increasingly you can do it on the bank’s website or app. The message is sent and the bank will credit the money to your friend’s French bank account. #SWIFT is only a messaging system. It does not hold any funds or securities. #velshi
Increasingly you can do it on the bank’s website or app. The message is sent and the bank will credit the money to your friend’s French bank account. #SWIFT is only a messaging system. It does not hold any funds or securities. #velshi
13/22
W/o #SWIFT messages, there is virtually no other way to alert banks when transactions are going to occur from country to country. For a term most of us don’t use, I can't overstate HOW crucial #SWIFT is for countries & businesses that buy and sell goods or services. #velshi
W/o #SWIFT messages, there is virtually no other way to alert banks when transactions are going to occur from country to country. For a term most of us don’t use, I can't overstate HOW crucial #SWIFT is for countries & businesses that buy and sell goods or services. #velshi
14/22
Very few countries are not on the #SWIFT system – and the ones that aren’t are isolated and poor. Without another system in place - and there are virtually none - it would mean economic calamity for a country to be removed from #SWIFT. #velshi
Very few countries are not on the #SWIFT system – and the ones that aren’t are isolated and poor. Without another system in place - and there are virtually none - it would mean economic calamity for a country to be removed from #SWIFT. #velshi
15/22
There would be no effective means for trade outside of its borders. Some people think that it’s time for Russia to be entirely removed from #SWIFT. The U.S., European allies and Canada did agree this weekend to remove some key Russian banks from the #SWIFT system. #velshi
There would be no effective means for trade outside of its borders. Some people think that it’s time for Russia to be entirely removed from #SWIFT. The U.S., European allies and Canada did agree this weekend to remove some key Russian banks from the #SWIFT system. #velshi
16/22
Kicking Russia out of the #SWIFT system would be the harshest financial punishment against Russia – short of an actual embargo - and an unprecedented move against one of the world’s largest economies. #velshi
Kicking Russia out of the #SWIFT system would be the harshest financial punishment against Russia – short of an actual embargo - and an unprecedented move against one of the world’s largest economies. #velshi
17/22
It would damage Moscow’s economy immediately and in the long run. So, why not do it? There are a few arguments. It would REALLY hurt Russia, but it would hurt other economies, too. Including some European countries that depend on Russian oil and gas. #velshi
It would damage Moscow’s economy immediately and in the long run. So, why not do it? There are a few arguments. It would REALLY hurt Russia, but it would hurt other economies, too. Including some European countries that depend on Russian oil and gas. #velshi
18/22
Also, if Russia can’t receive foreign currency for selling things, being off the #SWIFT system also means it can’t SEND currency to buy things from other countries. #velshi
Also, if Russia can’t receive foreign currency for selling things, being off the #SWIFT system also means it can’t SEND currency to buy things from other countries. #velshi
19/22
The U.S. and Germany stand to lose the most, because their banks use #SWIFT to communicate with Russian banks more than any other countries. #velshi
The U.S. and Germany stand to lose the most, because their banks use #SWIFT to communicate with Russian banks more than any other countries. #velshi
20/22
And the last time the West dangled this option - during the invasion of Crimea in 2014 - Putin said it would be equivalent to a declaration of war. #velshi
And the last time the West dangled this option - during the invasion of Crimea in 2014 - Putin said it would be equivalent to a declaration of war. #velshi
21/22
Alienating Russia from #SWIFT is considered a nuclear option --one we are considering-- because there’s no turning back after pressing that button. #velshi
Alienating Russia from #SWIFT is considered a nuclear option --one we are considering-- because there’s no turning back after pressing that button. #velshi
22/22
The explosion would destroy Russia’s economy – something that some see as a just punishment for invading the same sovereign country TWICE in 8 years. But the economic mushroom cloud would contaminate nations around the globe. #velshi
The explosion would destroy Russia’s economy – something that some see as a just punishment for invading the same sovereign country TWICE in 8 years. But the economic mushroom cloud would contaminate nations around the globe. #velshi
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