Advocates of cryptomonies have long wanted to highlight the weaknesses of the fiat currency. Now, in the face of an uncertain world, shaken by a global health crisis and geopolitical outbreaks, they are more than ever establishing a dialogue with the general public.
In a tweet posted on August 3, Ripple’s CEO Brad Garlinghouse shared a recent article on Bloomberg, which had explored the range of potential alternatives to the dollar as a global reserve currency.
The article referred to gold, several major fiat currencies – the yen, the yuan and the euro – and IMF-issued Special Drawing Rights, and ended with crypto-currencies.
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Garlinghouse said the success of digital currencies in the 2020s is a matter of „confidence in the financial system at the end of the day.
„As world populations continue to lose confidence in fiat currencies (as we are seeing with the USD), they will choose to diversify. Our future global financial system will do the same,“ he argued.
His argument resembles that of Tom Lee of Fundstrat, who had told Bloomberg that „confidence is really being lost in the traditional financial system, that’s the issue. The less confidence you have in the dollar, the more you look for alternatives.
Against this backdrop of economic turmoil, cracks in the post-1989 geopolitical order and tensions in global trade and investment, Garlinghouse argued that the intrinsic benefits of crypto-currencies are more evident than ever:
„A year ago, many denounced this type of currency as a scam, and now most governments are paying special attention to blockchain technology. These are frictions (i.e. agreements, transparency, etc.) that were previously supposed to be VERY difficult to resolve. Crypto currencies have risen by 80% while the USD has fallen by 3% so far this year.
China’s development of a CBDC is the key example of how a rising power is using innovative technologies to improve its game in the geopolitical, monetary and technological competitions of the new century.
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