Reserve currency

Iran wants to cash out a large deposit from Europe and the Trumpster is threatening Germany about allowing it. Moneyness is on the case.

We already know that the global payments system is highly susceptible to U.S.-led censorship. From 2010-2015, Barack Obama successfully severed Iran from the world's banks, driving the nation's economy into the ground and eventually forcing its leaders to negotiate limits to their nuclear plans.
The global payments system's susceptibility to U.S. censorship stems from the fact that an incredibly large chunk of international trade is priced in and conducted using U.S. dollars. To make U.S. dollar payments on behalf of clients, a foreign bank must be able to keep a correspondent account with a large U.S. bank. This reliance on U.S. correspondents allows U.S. authorities to use their banks as hostages. International banks can either comply with U.S. requests to cease doing business with Iran, or have their access to U.S. correspondent banks cut off. Dropping Iranian customers is generally the cheaper of the two options.

Iran has China, Russia and India with which to set up correspondent banking.  That is enough of a banking block to offset the Trumpster and his Repub oligarchs.

Why not a new banking block?

Mainly because each of the separate nations will cheat.  But we can do account clearing  with digital security built in, no crooked government in any of the three nations allowed to foul it up, as good as gold.  Or, a gold standard for temporary use until they trust each other.

The number one problem with central banks, they let the government cheat.  And the inevitable cheating favors a reserve currency as a safe haven.  In a way the Trumpster is correct to destroy the reserve currency network, it does us no good.