Bitcoin (BTC) poses a significant threat to the US dollar, the world’s reserve currency, according to a strategist at the major American investment bank Morgan Stanley.

Ruchir Sharma, chief global strategist of Morgan Stanley Investment Management, said the reign of the dollar; he believes it will end due to global distrust in traditional finance and that Bitcoin will take advantage of this lack of trust.

In a December 9 article in The Financial Times, Sharma provided a brief summary on the history of world reserve currencies, pointing out that this status of the dollar in early 2020 lasted 100 years. According to the strategy, other major global fiat currencies such as the euro or the Chinese yuan have failed to gain the general public’s trust. The strategist underlined that the dollar is not a successor.

“Bitcoin can threaten the supremacy of the dollar”

Sharma said that a new class of decentralized competitors – cryptocurrencies like Bitcoin – could threaten the dollar’s supremacy. In the midst of the epidemic, Bitcoin has quadrupled its price since March, making it one of the most hot investments of 2020. The strategist also stated that the US Federal Reserve continues to print money:

“THE RULES OF THE DOLLAR POSSIBLE TO END WHEN THE REST OF THE WORLD BEGINS THE CONFIDENCE THAT THE US WILL CONTINUE TO PAY BILLS. […] IT IS POSSIBLE TO CONTINUE TO PRINT MONEY EVEN WHEN THE PANDEM IS PASSED. BITCOIN WILL PROFITABLE FROM INCREASED INSECURITY WITH TRADITIONAL ALTERNATIVES, WHETHER IT IS RELIABLE OR NOT. “

Sharma also noted that Bitcoin is starting to “make progress in changing the dollar as a medium of exchange.” The strategist said that the adoption of Bitcoin is gradually increasing from investment to international trade and other use cases. “In recent weeks, PayPal and its subsidiary Venmo have started storing Bitcoin with the eye of accepting it as payment next year,” he added.

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The strategist warned central banks to pay more attention to monetary policies if they want to maintain their positions of power:

“THE RISE OF BITCOIN MAY STILL BE A BALLOON, EVEN IF IT EXPLODES, THE INTEREST IN THE CRYPTO CURRENCY Seen THIS YEAR; ESPECIALLY SHOULD HAVE A WARNING DUTY TO ALL STATES THAT MAY MONEY BECOME THE USA. DO NOT ASSUME THAT YOUR TRADITIONAL CURRENCY ARE THE ONLY STORAGE OF VALUE OR A TOOL OF EXCHANGE THAT PEOPLE CAN TRUST. “

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