"Everyone must love it when crypto beats the US dollar or some hate it?"
The giant Wall Street firm Morgan Stanley (MS) revealed that the dominance of the United States (US) dollar as the leader of the international financial system is increasingly being questioned as geopolitical currents change and the country's twin deficits* increase.
There is no denying that cryptocurrency is still in its infancy, but it has the potential to erode the dominance of the US dollar in global finance.
According to Andrew Peel, head of the digital asset market division at Morgan Stanley, the currency landscape is capable of significant change due to the growth of interest in digital assets such as Bitcoin (BTC) plus there is an increase in the volume of stablecoins and the hype of central bank digital currency (CBDC).
This is because some countries are more interested in finding other alternatives, Peel commented, adding that the shift towards reducing dependence on the US dollar is clear and at the same time increasing interest in crypto, stablecoins and CBDC.
He also believes that a stablecoin pegged to the US dollar is very important as it may actually emphasize the need for fiat currency.
The continued evolution and increasing adoption of digital assets by mainstream financial entities has demonstrated their potential to drastically change the global financial landscape further cementing the US dollar as the dominant global currency.
However, the growing use of stablecoins has sparked widespread interest in CBDCs.
So here it can be seen that as digital currencies are more adopted and technologically advanced, they may create a unified standard for cross-border payments that can reduce reliance on intermediaries such as SWIFT and the use of dominant currencies such as the US dollar.
