> If there's a sufficient need, Polish banks could establish an interbank settlement system through which they could transfer USD directly (e.g. similar to the one they have for transfering Polish zloty), but it's a hassle and has costs, so currently they have not done so because for them it's generally not a problem to route all USD payments through USA.
Doesn't it still need to be involved with USA? I mean, sure, they can use this settlement system to trade between each other independent of Fed, but ultimately the funds in the settlement system have to be stored as reserves in Fed, i.e. in some bank under US jurisdiction. So, after all, US still has control over this new settlement system, but now they can't freeze individual accounts in it, they can only freeze funds in reserve account(s) that this system consist of, potentially affecting many (innocent) parties. Am I right?
Doesn't it still need to be involved with USA? I mean, sure, they can use this settlement system to trade between each other independent of Fed, but ultimately the funds in the settlement system have to be stored as reserves in Fed, i.e. in some bank under US jurisdiction. So, after all, US still has control over this new settlement system, but now they can't freeze individual accounts in it, they can only freeze funds in reserve account(s) that this system consist of, potentially affecting many (innocent) parties. Am I right?