Jim Bianco Says Cryptocurrency Will Be The Next Reserve Currency replacing US Dollar
The US dollar, one of the most promising currencies in the world, seems to be slowly losing its radiance. This is because slowly and eventually the world is accepting cryptocurrencies as a legitimate currency option.
With no doubt, given the current social status of the world, with the economy falling everywhere and people facing a financial crisis. A number of the population has turned to invest in US dollars from risky assets because of the currency’s promising security.
“Ninety percent of the world is in dollars,” Bianco said. “If you are Chinese, and you want to do a trade for Brazillian timber. You’re quoting the price and paying for it in dollars, is what you’re doing most of the time. Said Jim Bianco, CEO, and president of Bianco Research
However, the dollar itself is capable of making mistakes and changing and therefore over time a phase where it is no longer used as a reserve currency may come soon.
Also read: U.S. Economy Recommends to Create a Digital Dollar Amidst Coronavirus Pandemic
The Ask is, are cryptocurrencies worth being made the reserve country of the world?
Yes, the crypto-assets do look very promising and seem to have the potential to dethrone the dollar.
Bianco, says that the event of cryptocurrency taking over the dollar is going to happen soon. He further adds that the future reserve currency would be from the crypto realm. Since there is no other global fiat that has the credibility to beat the U.S. dollar.
He said, “I’ve argued that, in theory, the next reserve currency will be crypto,” in an episode of Anthony Pompliano’s podcast on April 17.
In the same episode, when Pomp asked Bianco if people will start looking beyond the walls of government and traditional mainstream structure for an alternate reserve currency. He replied saying,” I think they’ve been desperately looking for one for 10 years”
He further added that currently there is no such cryptocurrency that has the potential to take over The USD by adding, “It probably doesn’t exist yet.”
Facebook Libra project, however, had the potential but had lost it ever since it got involved in government oversight and regulatory red tape. It faced considerable backlash from governments across the world and is currently in limbo.
He further added that the ideal crypto should be both a medium of exchange and a store of value and that the asset will exist outside of governmental control.
Why does the voice of Bianco matter?
Bianco Research operates in the economics and finance analysis field and therefore when they predict the world’s next reserve currency, it is worth considering their statement.