The choice of the dollar as the Reserve Currency in 1944 was due to its strength and backing by gold. However, this changed on August 15, 1971, when President Richard Nixon ended the Gold Standard, leading to a decline in the dollar’s strength. Countries like Russia and China have sought alternatives to the dollar, forming organizations like B.R.I.C.S. and the Asia Infrastructure Investment Bank.
The Chinese Yuan was included in the IMF’s basket of currencies in 2015, challenging the dollar’s dominance. The overprinting of the dollar since 1971 has weakened it further, especially after the 2008 housing market collapse. With the rise of Cryptocurrencies and stable coins, as well as discussions around Central Bank Digital Currencies, the dollar’s status as the top Reserve Currency is in question. Could following Randal Quarles’ advice on stablecoin-driven money systems help the dollar maintain its position? Read Michael J. Casey’s article on CoinDesk for insights. Don’t forget to subscribe for updates and share valuable information with your network. Check out the full article here.
