Crypto Could Undermine USD as the World’s Reserve Currency

The U.S. Office of the Director of National Intelligence has posted a research opportunity entitled “Evaluating the Impact of U.S. Dollar Losing Its Status as World Reserve Currency.”

“There are many advantages for U.S. national security to have the U.S. dollar as the world reserve currency. Any international transaction settled in US dollars gives the U.S. jurisdiction over financial crimes associated with those transactions,” the office stated in its posting. “In addition, the U.S. is able to effectively level sanctions against or designate entities that violate international laws or treaties, or that have the potential to cause financial instability in global markets.”

However, “there are many threats to the U.S. dollar maintaining its status as the world reserve currency,” the Office of the Director of National Intelligence explained. “Countries such as China and India have large growing economies that could compete with U.S. economic growth,” its post describes, adding:

Many cryptocurrency enthusiasts predict that either a global cryptocurrency or a national digital currency could undermine the U.S. dollar … The U.S. should prepare for scenarios that threaten to undermine the U.S. dollar as the world reserve currency and determine how those scenarios could be overcome, protecting our status in the global economy.

Referring to the above threats, the post notes that “If either of these scenarios or others come to pass, the U.S. would lose both its status in the world and its global authorities.” The posting further asserts: “The U.S. should prepare to identify potential ‘black swan’ events that could revolutionize the financial playing field in ways we do not yet understand – presenting strategic surprise — and understand root causes and driving factors that are particularly sensitive to certain global or technical events.”

bitcoin.com

Crypto Could Undermine USD as the World’s Reserve Currency
Loading spinner

Leave a Reply

Scroll to top