The US Dollar still holds the fort as the reserve currency in the world but it surely starting to look weaker against Crypto. Ripple CEO Brad Garlinghouse, took to Twitter earlier today, and shared a thread on how the US Dollar is looking against Crypto in the current market scenario.
“Thread on this USD as the world’s reserve currency has been the backbone of global financial infra, and that position isn’t going to disappear in favor of gold/the yuan/crypto/any other asset any time soon. But is it weaker today? Yes,” Brad said in his first tweet.
“A year ago, many decried crypto as a scam, and now a majority of govts are looking seriously at blockchain. It addresses frictions (i.e. settlement, transparency, etc) that were assumed VERY hard to solve before. Crypto is up 80% while USD is down 3% YTD (2/3),” he added.
“As @fundstrat said, it comes down to trust in the financial system at the end of the day. As global populations continue to lose confidence in fiat currencies (as we’re seeing with USD), they will choose to diversify. Our future global financial system will do the same (3/3),” he further explained.
A Bloomberg article has earlier echoed the same sentiments. Tom Lee, co-founder and head of research at Fundstrat Global Advisors said that trust is getting broken in the traditional financial system. The authors have noted that crypto has been volatile notoriously and been manipulating.