A New Era for Global Finance?
The world is witnessing a shift in its monetary order, with stablecoins gaining traction and potentially cementing the US dollar’s position as the global reserve currency. This phenomenon has been decades in the making, but recent developments have brought it to the forefront.
In the late 19th century, a unified gold standard united much of the world. The Bretton Woods system followed after World War II, but its demise in 1971 marked a new era for fiat money and floating exchange rates. Fast-forward to today, with the emergence of cryptocurrency, it’s clear that a new monetary system is taking shape.
The rise of dollar-backed stablecoins has significant implications. As more people outside the US adopt cryptocurrencies like Tether, their economies are becoming increasingly “dollarized.” This trend could lead to the dollar retaining its dominance for several decades or even longer. Experts point to this as a potential turning point in global finance, one that may reshape the way we think about currency and monetary policy.
Source: https://www.bloomberg.com/opinion/articles/2025-02-12/stablecoins-will-entrench-dollar-dominance-for-another-century