Global de-dollarization and the role of Bitcoin: Arthur Hayes
Global de-dollarization and the role of Bitcoin: Arthur Hayes
could the US dollar lose its status as a global reserve currency? Bitmex co-founder Arthur Hayes does not exclude the possibility and believes that it is a question it is worth being considered for those who want to preserve their assets.
The former stock market CEO published an essay on Thursday in which he examined the economy and role of the dollar worldwide and how his shrinking role could affect global crypto acceptance.
dominance and decline of the US dollar
in which essay entitled "Exit Liquidity" said Hayes explained that the worldwide dominance of the dollar is based on the open capital balance of the United States and their dedication to free trade. Both create additional demand for the dollar because the former enables Asian countries to buy American assets with USD, and the latter enables Americans to buy cheap Asian products.
The issuer of the global reserve currency also means that the US Federal Reserve and the US Ministry of Finance are responsible for keeping the global economy intact. In other words, if the global economy demands more USD, the USA must provide it - even if this fueled the pressure to inflation on the inland economy.
"Billion dollars of the wealth of Asia also depend on the favor of American politicians," wrote Hayes. "As Russia recently found out, the rule of law and property rights are not iron."
In the past few months, several global trade corridore has signaled interest in removing the handling of trade in dollars. For example, Chinese and French energy companies agree last month to complete a business with liquefied natural gas in CNY instead of in USD. Brazil and China also have hit a deal with their national currencies instead of acting with the dollar.
as Hayes explained, such a strong dependence on the dollar means that countries like China import the monetary policy of the United States and also have to be exposed to their political risks.
While the United States had long been regarded as reliable and politically stable nation, the co-founder claims that this had changed in view of the arrest of former President Donald Trump in the early this month. By chance trump predicted that the US dollar would lose its global dominance shortly after its release.
The future of global currency
hayes predicted that there would be several currency blocks in the future, but no currency "hegemon" like today's US dollar. Immersores between the blocks are compensated for in a "neutral reserve currency" such as gold and crypto, which "are not bound to any specific country".
"Since Bitcoin continues to prove that it is the hardest money that has ever been created, I assume that more and more countries will at least start to consider whether it is a suitable savingshiot in addition to gold," he continued.
Hayes also combined the threat of the weakening role of the dollar on the global stage with the procedure of the bid administration against crypto companies. "The West makes it more difficult to buy crypto and keep it in a private wallet," he added.
Since the collapse of FTX, many politicians from the political left of America have become particularly skeptical about crypto, some of them survey
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