US Dollar Reserve Currency
The US Dollar has been the world’s reserve currency for around 80 years.
With the rest of the world trying to compete, as well cryptocurrencies budging in, the question is how could the US Dollar remain the World’s Reserve Currency?
According to the IMF’s database, the US Dollar Remains the preferred reserve currency with around $6.58 Trillion. This is greater than ALL other reserve currencies combined at around 12,039.6 Trillion (1).
How could one, or even all of the separate currencies compete with the US Dollar?
According the Council on Foreign Relations, it is “unlikely that the greenback will be replaced as the leading reserve currency anytime soon.”
Now, China does hold the most reserves at $3.2 Trillion, while the US only holds $232.7 Billion
But according to Zongyuan Zoe Liu, a CFR expert, “China does not have the intention or the capacity to dethrone the dollar.”
The circular investment of Treasury Bills, into our robust central bank and monetary policies, into the world’s trade systems, into sanction and other powers, to common treasury and unified bond market, back to Treasury Bills is a near-impossible cycle to break.
As far as cryptocurrencies, blockchain technology is not new. We’ve gone further and further away from cash as globalization grows, and we don’t foresee that stopping – but expanding. It seems that each country uses blockchain to create digital versions of existing currencies (2). The US’s Central Bank Digital Currency (CBDC) is called stablecoin. Some 130 countries are exploring a CBDC, and some have even launched. However, these are mostly based on existing currencies, not a whole new global currency… yet.
Cryptocurrecies, Digital Assets and other Blockchain related technology (such as Bitcoin, Ethereum, NFTs and others) are not securities, not regulated and not approved products offered by Cetera Advisor Networks LLC, and cryptocurrency or other blockchain related non-securities products cannot be recommended, offered, or held by the firm.