What will be the new world currency?
Amid the ongoing crisis, leading economists are haunted by thoughts of a new world currency. In fact, there is a logical reason, then, sooner or later, the era of the dollar will come to an end. Following this currency, the euro is likely to disappear. Thus, the place of the global currency used around the world will open up for new assets. When to expect such a change? Perhaps Bitcoin is the new world currency, or will a completely different currency get fame? Today we will answer all such questions, sorting out the most probable forecasts regarding the emergence of a new world currency. So let’s get started.
When will the priority change happen? Is the new world currency coming in 2020?
We must say right away that the emergence of a new world currency and the complete departure of the dollar is a very long process, which is likely to drag on for several years. The fact is that even today, given all the difficulties, people trust their savings to the American dollar. It will take time and a truly reliable asset to translate the economies of many countries and the accumulation of ordinary citizens. We can confidently say that in 2020 such global processes will not happen for sure. However, this does not mean that you can not prepare today. Most likely, we will see the release of a new currency on the world stage before the end of the current decade. There is enough time for preparations.
Everyone who was worried that the crisis would be the collapse of the dollar can relax.
Can cryptocurrencies completely replace the Dollar and the Euro?
Probably not. Even the most confident crypto enthusiasts cannot deny the fact that the pricing process of most coins, including Bitcoin, is not suitable for the role of the world currency. As we all know, the rate of cryptocurrencies directly depends on such unreliable factors as the attention of the audience. That is why the cryptocurrency exchange bans, coin bans and other events related to the popularization of coins sharply respond to the value of cryptocurrencies. Such unreliable mechanisms are not compatible with the status of the global currency. That’s why the question “what is the new world currency” at the moment cannot be answered with “cryptocurrency”.
Many analysts agree over time that the future is stablecoins. Already on the market, there are a great many coins, similar to Tether and Gemini, which are tied to a specific standard. Yes, for now, the cryptocurrency rate is completely dependent on the value of the American dollar, but if necessary, you can change the approach to the platform and attach the crypt to gold. Thus, the main engine of the market is preserved – the gold standard, but the gradually ageing dollar is being replaced by a progressive stablecoin. A stable, convenient and fast currency will surely appeal to large investors and ordinary users.
There is also an opinion that the classic fiat currencies will still remain as the physical equivalent of the new world currency. Thus, the dollar, euro, ruble and yuan will not disappear. Just their role in the economy will recede into the background, compared with a more progressive and modern solution.
New world currency 2020. What if not a dollar?
If you are firmly convinced that the dollar has no future, you need to think about acquiring alternative assets today. First of all, you should look at the euro. The positions of this currency are currently extremely confident. Nevertheless, a serious decline in prices is expected in the near future, so we need an asset that can bear any adversity and will allow you to earn money even in times of crisis.
A good option was, is and remains gold. Many countries still value their own gold reserves; this precious metal serves as a reliable support in times of crisis. From cryptocurrencies, one should look at large coins like Bitcoin, Ethereum and Ripple. Yes, now the price tags for these coins are quite low. But the point is to invest in an asset that will survive the crisis and help move through difficult financial times. These are precisely the described coins, euro, dollar and gold. But the future, as we have said, is stablecoins. This connection of classic market instruments, multiplied by innovation, will definitely lead the global economy forward.
Thank you for your attention, good luck!