The Beginning of the End: Is The USD’s World Dominance Over? Part 2 of 2

By Andrew J. Burns on ALTCOIN MAGAZINEThe PoliticsIf there weren’t any political disagreements then there is a better chance that if the US didn’t put economic sanctions on countries thus depressing their economy then not having any ties to the US dollar wouldn’t be as bad. It is though… it’s worse. The largest cryptocurrency in the US that is currently in a stalemate was created by the largest social media company, Facebook. Good news for Facebook is that they will inevitably be in some part the piggy bank and this is what the US government doesn’t like…not having full control. Unless Facebook completely sells the technology and concept to the US Government, the US government will do nothing more than what China does to all technology firms…steal technology. The interesting factor is that while Facebook says it’s nothing to be afraid of to major companies that would be major partners in the currency, the biggest entity that sees Libra as a threat is considered to be China. It wouldn’t be very difficult to argue about why China needs its own cryptocurrency. Not only is it easy to assume that they would love to be the country that has the most standardized and pegged currency, but it also can be assumed that China is no longer wanting to be second to the US, whether it’s the economy or military power. Long story short, there are many reasons why China will be entering the crypto market, but like the US government not likely to have full control over Libra, the Chinese government will somehow need to figure out how they will accept the transparency of cryptocurrency being public where China would want to keep it private. This is where the risks could get higher for digital currencies or a digital yuan, security is not as strong which will instantly make the currency less trusted and have less value.To make sense of the development of the digital yuan versus the Libra, it should be clearly understood that the digital yuan would not be on a blockchain ledger since the Chinese government doesn’t only want control…it fundamentally believes it needs to control all aspects of Chinese citizens which includes banking which at this moment would keep the cryptocurrency definition of the digital yuan completely different. It thus will not be on a public ledger and again this would be where Libra has the advantage of potentially being the next leading cryptocurrency. Regardless of what direction China decides to move forward with making their fiat currency digital or crypto, the government knows that something needs to change. Russia and China’s relationship over the last few years have never been stronger thus it is probably easy to say that oftentimes the economic sanctions imposed by the US have cost both country’s economy’s a substantial amount of money. What is the answer to eliminating the pain from US sanctions? No longer being tied to the US dollar in any way. There are many other factors to be aware of that could make the next couple of years for the global economy look either horrifically bad or unbelievably amazing. One thing is absolutely for sure and that is how much of an impact Libra will have in whatever way it is finally utilized and also how other countries create and utilize their currency.It would probably be safe to say that if every country trusted one another enough, a global cryptocurrency that is the standard for the global economy would be the perfect situation to revolutionizing how money is used in the 21st Century, but this is as unrealistic as determining there should be only one language is used for business. Well, in most cases, English is the language that bridges many international companies and colleagues to work together, but even this is not a fail-safe model although it does work, just not perfectly. It would also be safe to say that any country will probably not trust the digital currency of another if it has to do with sums of money in the hundreds of thousands to hundreds of billions of dollars. This is exactly why a currency like Libra, is not designated as a digital currency but cryptocurrency which is again, public and transparent which is still again, something coming from the US and to any other major superpower, is not going to be very excited about. At whatever size of an entity, whether it be a business, city, country or a partner in a major global organization, the evolution of currency is here to stay. The next chapter will be interesting and hopefully, one that is promoted to being something safe, beneficial to all parties, and not controlled by one group or party more than another…The need for something like this has been around for many decades and the punishment of economic sanctions has been disproportionately unfair to many countries in bad standing with the US, for whatever reason, especially with the US being so far in debt. Libra may somehow come out to be the next global currency which the US would love, but unfortunately, it may be only the US that loves it and other nations will be doing whatever possible to destabilize or introduce a bigger and better competitor.Altcoin Magazine Beginning of the End: Is The USD’s World Dominance Over? Part 2 of 2 was originally published in ALTCOIN MAGAZINE on Medium, where people are continuing the conversation by highlighting and responding to this story.
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Author: Andrew J. Burns