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Politics : Foreign Affairs Discussion Group

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To: Fiscally Conservative who wrote (281472)	11/15/2020 8:04:57 AM
From: Sun Tzu	Read Replies (3) of 281500

Lack of alternative is the only reason why the USD has remained the reserve currency for so long. But you must realize that the world is dynamic and that things should offer inherent value rather than rely on lack of alternatives... Having a status due to lack of alternatives is like being a boyfriend/girlfriend until Mr./Ms. Right comes along. It's not a viable long-term relationship. But since you ask, there are a number reasonable situations that can arise to challenge the USD dominance and its role as the reserve currency. And to be clear, reasonable means that active and substantial progress is being made on these fronts. The first is replacing the SWIFT Network with a smart contract and/or blockchain based network for clearing international trade. Another possibility is the Chinese RMB once they open up their bond and currency markets. A third will be a stable coin based on a basket of currencies and commodities. I personally think that all 3 will happen. It will start with the first item, the 2nd will be a contributing factor to bring about the 3rd as the final solution.

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