The CEO and Macro Strategist at Bianco Research firm, Jim Bianco says that cryptocurrency has the potential to become the next reserve currency of the world by replacing the current reserve currency US dollar. Recently, Jim Bianco got himself into an interview on the Pomp Podcast which was hosted by Anthony Pompliano the founder and partner at Morgan Creek Digital. In the interview, he said that the world’s current reserve currency is the US dollar and therefore, around 90% of the world trade is being done in this fiat currency.
People are looking for the next reserve currency
The US dollar seems to be losing its value as the world’s reserve currency. Therefore, people around the whole world have started looking for the next reserve currency. They are looking for the best alternative to the US dollar. According to Jim Bianco, no other fiat currency can prove to be a better alternative. Therefore, he believes that a cryptocurrency will be the next reserve currency of the world. He said, “I’ve argued that, in theory, the next reserve currency will be a crypto”.
He firstly thought at one point that Facebook’s Libra currency can hold this position but his view got changed later. As he said:
“I thought maybe Libra would do it, but then I thought for sure I was onto something because the first thing they did when they announced Libra was they dragged Marcus in front of Congress and ripped him a new one because they were afraid of what Libra represented.”
What should a crypto asset need to be the next reserve currency
According to Jim Bianco, only that cryptocurrency can become the next reserve currency if it has the ability to serve both as a store of value as well as a medium of exchange. He said that bitcoin cannot be the one because he does not consider the leading digital asset a good medium of exchange. He does not even know which digital currency it could be.
“It probably doesn’t exist yet. I don’t know when it will exist or which one it will be because it needs to be both a medium of exchange and a store of value. Bitcoin might be a store of value, but it’s not a real good medium of exchange.”
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.