The dollar has long enjoyed its status as the de facto global reserve currency. But the global financial system now relies less on the dollar than ever: In 2020, global banks’ USD reserves dropped to the lowest level in a quarter-century. A group of experts joined Roundtable to discuss what a move away from the dollar may mean for global finance and fiat currency. In this segment, the panel focuses on crypto's developing role in this wider transformation.
Luke Stokes foresees that Bitcoin may soon supplant the dollar as a global standard.
“We have a new technology that never existed before, [so] we can actually have a world reserve currency not run by any government authority anywhere on the planet, which has never been a thing before,” he says. “It's already the world reserve standard within the crypto community. A change is coming quickly.”
Stephen Adams notes that inflation has spurred a rapid shift to investment in assets, and crypto has become a more accessible investment than others.
“Not only do you have hard assets like commodities, real estate, but now you're also getting things like cryptocurrency into the mix,” he says. “You're seeing people fly away from the dollar and going into a hard asset in which they can know that their money is safe for the long term.”
Julia Whippo points out that the United States is also losing its hegemonic status.
“The U.S. has been able to afford maintaining its position as a reserve currency, based on the us status of being the world's largest economy and importer of goods, having deep liquid capital markets backed by the rule of law and its military power,” she explains.
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“But if we look at those first two points, those are being encroached upon rather quickly, the largest economy being encroached by China and capital markets being encroached on by crypto.”
Watch the full discussion below:
Luke Stokes, Managing Director, FIO
Stephen Adams, Digital Asset Educator & Founder, Digiwealth
Julia Whippo, Entrepreneur & Investor