The dominance of the U.S. greenback because the linchpin of the worldwide monetary system is being more and more questioned because of shifting geopolitical currents and the nation’s rising twin deficits, Wall Avenue large Morgan Stanley (MS) stated 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 stated.
“The latest development in curiosity of digital belongings reminiscent of bitcoin (BTC), development of stablecoin volumes and the promise of central financial institution digital currencies (CBDCs), have potential to considerably alter the foreign money panorama,” wrote Andrew Peel, Morgan Stanley’s head of digital asset markets.
U.S. financial coverage, mixed with the usage of financial sanctions, have compelled some nations to search for options to the greenback, Peel stated, including {that a} “clear shift in direction of decreasing dollar-dependency is obvious, concurrently fueling curiosity in digital currencies reminiscent of bitcoin, stablecoins, and CBDCs.”
