HomeNewsCNN highlights U.S. Dollar's global supremacy erosion - Will Bitcoin replace USD...

CNN highlights U.S. Dollar’s global supremacy erosion – Will Bitcoin replace USD in international settlements and send BTC to the moon?

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  • USD’s dominance in global trade is facing major challenges amid the changing geopolitics and developments around the US banking system.
  • Many investors are betting on Bitcoin to emerge as the global currency of the world in the future.

Amid the changing dynamics of global geopolitics and the current macro developments in the US financial system, the US Dollar is facing imminent threats to its everlasting hegemony in the global financial world. In the aftermath of the Russia-Ukraine war, US’s economic rival China has been working with Russia to push the use of the Yuan in global trade.

It’s also joined hands with key American allies and oil partners like Saudi Arabia in bypassing the US Dollar and making oil purchases directly in the Yuan. CNN released a report explaining how the USD’s dominance seems to be on a declining trend recently.

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As these key developments unravel in the global financial industry, finance enthusiasts are curious as to what will be the replacement for the USD. Crypto enthusiasts believe that the USD’s eroding supremacy is likely to provide a boost to decentralized digital assets.

As we move towards a multi-polar world many believe that Bitcoin could be the currency of the globe in the future. Backed by decentralized blockchain technology, Bitcoin (BTC) facilitates faster cross-border transactions at low costs.

Bitcoin’s Role in Global Finance

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Over the last few years, the adoption of Bitcoin worldwide has accelerated over time. Not only retail players, but big financial institutions and even corporates are seeking exposure to Bitcoin and maintaining BTC reserves.

Although Bitcoin continues to be a very volatile asset class, it’s slowly emerging as a hedge to traditional finance. The performance of Bitcoin against the recent banking crisis in the US and Europe has been a testament to its hedge status.

As the banking crisis unfolded this month sending jitters across global markets, Bitcoin continued to gain strength. The Bitcoin (BTC) price is already up by more than 70% year-to-date outperforming almost every asset class right from equities to Gold. Bitcoin’s resilience during the banking crisis has attracted the attention of investors across the globe.

Although Bitcoin has rallied to $28,000, the liquidity for the world’s largest crypto has dropped to a 10-month low. Speaking to Bloomberg, Conor Ryder at Kaiko said:

Liquidity on US exchanges and USD pairs in particular have been hardest hit thanks to the banking fears. It looks as if a big reason for the latest price rally in BTC was due to illiquidity, when depth is low, there is less support to not only the downside but also the upside as well.

On the other hand, institutional demand for Bitcoin and other cryptocurrencies also remains strong. Nasdaq, the 52–year-old exchange operator is awaiting approval from NYDFS to secure a license to offer custodial solutions to crypto clients.

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Jack Williams
Jack Williams
As a Blockchain Analyst, I specialize in analyzing the performance of decentralized systems and optimizing their efficiency. Through data analysis, I provide insights on blockchain technology, smart contracts, and cryptocurrencies to help businesses make informed decisions and improve their operations.
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