The dominance of the U.S. greenback because the linchpin of the worldwide monetary system is being more and more questioned on account of shifting geopolitical currents and the nation’s rising twin deficits, Wall Avenue big Morgan Stanley (MS) mentioned in a report final week.
Enter cryptocurrencies, which, whereas nonetheless of their early levels, have the potential to each erode and reinforce the greenback’s dominance in international finance, the financial institution mentioned.
“The current progress in curiosity of digital belongings corresponding to bitcoin (BTC), progress of stablecoin volumes and the promise of central financial institution digital currencies (CBDCs), have potential to considerably alter the forex panorama,” wrote Andrew Peel, Morgan Stanley’s head of digital asset markets.
U.S. financial coverage, mixed with using financial sanctions, have pressured some nations to search for options to the greenback, Peel mentioned, including {that a} “clear shift in the direction of decreasing dollar-dependency is clear, concurrently fueling curiosity in digital currencies corresponding to bitcoin, stablecoins, and CBDCs.”
