The Struggle to be the World Reserve Currency

The global economy has traditionally relied primarily on the US dollar, giving the US the power to exert influence over other countries through economic sanctions.

Despite various countries’ efforts to reduce their reliance on the US dollar, such efforts have ultimately failed, with the dollar maintaining its dominant position over other currencies. Although the Euro attempted to reduce the dollar’s dominance, it was unable to do so.

I even heard lately that the BRICS group of nations wants to launch a new gold-backed currency later this year, as the latest attempt to undermine the US dollar’s supremacy. It remains to be seen whether this initiative will be effective in the long run.

In my view, Bitcoin is the only significant contender that poses a potential challenge to the US dollar’s global hegemony. There have been instances where the International Monetary Fund (IMF) advised the President of El Salvador to restrict exposure to bitcoin, which he strongly opposed.

There is a growing trend in certain countries and cities to acknowledge the advantages that come with using crypto. For instance, Russia has expressed its willingness to explore the option of accepting crypto payments for its oil, while Lugano has recently implemented a payment system called “Plan B” in collaboration with Utrust to simplify transactions for its residents.

I feel that the aforementioned trends may have played a role in the United States’ harsh cryptocurrency legislation. This, however, will not delay the eventual mainstream adoption of cryptocurrency, which will happen spontaneously over time.

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8 thoughts on “The Struggle to be the World Reserve Currency”

  1. Personally, I think regulation is inevitable atp. Best thing to do is roll with the punch. And yes, bitcoin should be the reserve currency. But at the same time, crypto should interact enough with tradfi to build those bridges. We need more projects like MNICorp, investing in real world projects even though they’re a crypto project.

  2. Soon, many countries, including El Salvador and the city you named, will be viewed as heroes for adopting crypto before others; I hope we can all see how the USD is crumbling now.

  3. Bitcoin has one single person holding 1% of the entire supply that will ever exist, that aside the US have 12 aircraft carriers hence why the USD was agreed as the currency to price petrol and be the global currency

  4. With or without the harsh legislation on cryptocurrency the mainstream adoption of cryptocurrency and blockchain technology is already happening in several sectors aside from the business sector with thousands of businesses integrating crypto payment option into their platforms. Sport is another good sector for example, taking football as a case study. Virtually all the top European clubs have one thing or the other to do with cryptocurrency apart from their fan tokens in cryptocurrency.

  5. I think very soon, crypto payment will be widely accepted even among individuals because now we have an increasing number of web3 payment projects with the likes of Alchemy pay and CryptMi coming up with new tech innovations that makes crypto payment easier.

  6. The US or any major economy will not give in to any crypto (be it BTC, ETH, USDC, etc) without a fight. Hence the launch of their Central Bank Digital Currency (CBDCs). China has already pioneered the movement and the West is playing catch-up to bringing CBDC wallets to every citizen’s smartphone

  7. This is just one of the main concerns IMO. CBDC is fast approaching as well, and this will rattle things for sure. I’m not that confident about rattling other people, but, I can see how it makes or breaks the TradFi at some point. As for me, I wanna park these concepts for now as I look at new and unique platforms like Cleotech that aims to bridge brands and target audiences efficiently as they make impact to the planet through tree planting and offsetting carbon emissions.


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