Ju explained that retailer-of-model property fancy gold and Bitcoin tend to upward thrust in model when investors feel US economic dominance is below threat. Nonetheless, he illustrious that self belief within the US economy and the greenback stays solid, with many investors persevering with to examine the greenback as a safe haven foreign money.
This notion of strength, Ju argued, makes it no longer going that the Trump administration would adopt a Bitcoin strategic reserve. In its save, Trump might presumably well even prioritize insurance policies that toughen the dominance of the US greenback. Ju said:
“Even earlier than his inauguration, Trump constantly warned other world leaders of the skill gap between the US and other countries. This rhetoric, blended with elevated capital inflows to the greenback, might presumably well even renew self belief in its supremacy.”
He added, “Spherical me, many Koreans are deciding on US dollars as a safe haven over gold or Bitcoin, critically as the Korean won weakens.” This improvement is mirrored in emerging economies, where folk an increasing selection of use US greenback stablecoins to retailer model.
Stablecoins Enhance US Greenback Dominance
Paxos CEO Charles Cascarilla recently told Cointelegraph at the Bitcoin MENA conference that stablecoins will seemingly be central to the blockchain economy. Per him, greenback-pegged stablecoins beef up the utility of the greenback by combining fiat foreign money stability with the price and international attain of blockchain technology.
In international locations fancy Turkey, where inflation hit 67% in March 2024, stablecoins changed into vital. Turkey leads the realm in stablecoin purchases as a percentage of GDP. Equally, a 2023 Chainalysis file published that over 50% of digital property despatched to international locations fancy Argentina, Brazil, and Mexico were stablecoins.
