Massive global threats and cryptocurrency are not a bother for the United States Dollar, remaining strong as a globally recognized currency, especially in the upcoming future. It was widely known before that cryptocurrency is one of the top threats of replacing the US tender, with the digital, blockchain-based coins perceived to be the future's currency, as well as the rise of the Euro and China's Yuan.
The Federal Reserve Board's Governor Christopher J. Waller regarded the dollar's status and their predictions for the future, addressing the threats and more.
US Dollar to Remain Strong Amidst Global Threats
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One of the US Federal Reserve Board's governors gave out a speech earlier today, addressing the US Dollar's existence and how it will fare against present and future threats. Here, Gov. Waller said that while there are legitimate threats to the dollar, it is no longer new, and this is something that is not a bother to its current trajectory and presence in the financial market.
The dollar serves as a safe, stable, and dependable form of money around the world. It serves as a reliable common denominator for global trade and a dependable settlement instrument for cross-border payments.
Federal Reserve Governor Christopher J. Waller
Here, the governor also regards that global threats like China's Yuan, Europe's Euro, other foreign exchanges, and cryptocurrency are indeed present, but the US dollar can withstand it in the moments to come.
In his speech, it was noted by CoinDesk that the US Dollar is also seeing massive help from the crypto industry's effects on it, with as much as 99 percent of those tokens tied to the dollar. Moreover, decentralized finance's (DeFi) rise could help strengthen the US fiat currency.
Gov. Waller regarded that most DeFi trading relies on stablecoins, which in turn, tied to the value of the US Dollar, helps bolster its dominant role in the world.
The US Dollar and Crypto
The digital currency was said to replace the world's various tenders, especially as it could offer faster transactions and better account management. However, the United States still keeps the dollar as its priority, initially considering the digital version of the USD, under the research and development of the United States Central Bank Digital Currency (CBDC).
Gov. Waller's recent statement said that the massive presence of the world's stablecoin still has its significant ties to the US Dollar, depending on its pricing which reflects on crypto exchange platforms. It is widely known that stablecoins are named like it for a reason, not seeing massive drops or increases, keeping a linear progression in the charts, but saw significant drops back when crypto saw a bear market.
The US Dollar is best known as one of the world's top-recognized currencies, and while it sees many threats in the financial industry now, it is not yet going extinct or fading to the background against global currencies. That being said, Gov. Waller believes that the next-generation DeFi will soon help the USD, both in keeping and boosting its global strength in the moments to come.
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