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Cryptocurrency Report from Morgan Stanley: “Bitcoin and Cryptos Could Break the Dollar’s Global Dominance”

source-logo  en.bitcoinsistemi.com 16 January 2024 17:23, UTC

The U.S. dollar's position as the foundation of the global financial system is increasingly under scrutiny due to changing geopolitical trends and the country's rising public deficits, according to a recent report from Wall Street giant Morgan Stanley.

The report highlights how US monetary policy and the imposition of economic sanctions have forced many countries to seek alternatives to the dollar.

The bank noted that although cryptocurrencies have only recently emerged, they have the potential to both undermine and bolster the dollar's dominance in global finance.

“The recent surge in interest in digital assets like Bitcoin, growth in stablecoin volumes, and the prospect of Federal Reserve Digital Currencies (CBDCs) could significantly change the currency landscape,” wrote Andrew Peel, Head of Digital Asset Markets at Morgan Stanley.

Peel noted that “a clear shift towards reducing dollar dependence is evident and is also driving interest in digital currencies such as Bitcoin, stablecoins and CBDCs.”

On the other hand, he observed that stablecoins pegged to the US dollar are also very important as they can highlight the need for fiat currency. “Their continued development and increasing acceptance by mainstream financial institutions underscores their potential to significantly change the global financial landscape and, in effect, strengthen the dollar as the dominant global currency,” Peel wrote.

*This is not investment advice.

en.bitcoinsistemi.com