In my view, this is not the end of dollar hegemony but the beginning of the end. As Philip Pilkington points out, countries are now forced to reconsider the dollar as a safe asset. It is unlikely to happen overnight, but it's on.
American Affairs (one free article a month for non-subscibers)
The End of Dollar Hegemony?
Philip Pilkington
https://americanaffairsjournal.org/2022/03/the-end-of-dollar-hegemony/
American Affairs (one free article a month for non-subscibers)
The End of Dollar Hegemony?
Philip Pilkington
https://americanaffairsjournal.org/2022/03/the-end-of-dollar-hegemony/
4 comments:
This is 100% in my opinion why crypto will keep going up. Maybe it's not the best alternative, but it could be perceived that way for now. State currencies are suspect due to cancellation risk.
Snowden Discusses Bitcoin’s Lack of Privacy
The problem with Bitcoin et al as 'reserves' is that it moves the systemically important structures to the crypto-exchanges.
In terms of MMT analysis the important stuff happens with institutions that do the exchanges - whether that is currency to currency, or asset to currency.
Physical borders are less important than what the operation settles its debt in.
Why is it crypto-currency enthusiasts never address the two questions of why a country would want its own currency and a reserves based system as part of this?
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