Lazard CEO says Cryptocurrency Challenges the US Dollar
The Chief Executive Officer of financial advisory and asset management firm Lazard, Ltd. Ken Jacobs mentioned that the increasing acceptance and usage of cryptocurrencies calls into question the status of US dollar as the world’s privileged reserve currency.
During an interview Jacobs declared that the United State’s one sided trade policy, and its unilateral foreign policy, is stimulating another economies to search for optional foreign reserves. He announced that the status of U.S. dollar as the world’s reserve currency is significant confirmation and proof of what soft power indicates.
Here are the insights of Jacobs:
“There’s enough technology out in the world today with cryptocurrency and changes going on that you can imagine if you let your mind wander a little bit, which something becomes an alternative in the future .”
During the period of more than 50 years, the US dollar has had unhindered status as the international currency in many countries because of the alleged stability which it provides in the worlwide markets. This fact has permitted Washington to keep its borrowed funds at bay and assist in financing the country’s budget deficit as the US trading partners distribute their dollars in Treasuries.
As per Jacobs, the risk to entirley change and replace the status of the US currency stays at distant probability as the nearest opponents such as Europe’s euro and the Chinese yuan, are still far from becoming the international currency of choice.
Nevertheless, Jacobs expects a non current risk to the US, especially if policy makers crash to put into place the immigration reforms that are necessary to reinforce economic growth in the future.