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

Ruchir Sharma, chief global strategist at Morgan Stanley Investment Management, believes the dollar’s time is likely to end due to global mistrust of traditional finance, while Bitcoin is likely to benefit from this mistrust.

In an article from the Financial Times on December 9, Sharma summarized the history of the world’s reserve currencies and noted that the dollar had been moving for 100 years in early 2020. According to the strategist, other major global fiat currencies, such as the euro or the Chinese. yuan, has failed to gain the confidence of the world, confirming that the dollar has no successor.

Sharma said a new class of decentralized competitors – cryptocurrencies like Bitcoin – would likely jeopardize the dominance of the dollar. Bitcoin has already established itself as one of the most important investments for 2020, after quadrupling prices since March in the midst of the pandemic and the ongoing printing of cash from the US Federal Reserve, which he noted:

The dollar rule is likely to end when the rest of the world begins to lose confidence that the United States can continue to pay the bills. […] The money will probably continue to be printed even after the pandemic has passed. Trust Bitcoin or not, it will benefit from the growing distrust of traditional alternatives. ”
Sharma also noted that Bitcoin has begun to “make progress in its quest to replace the dollar as a medium of exchange.” The strategist said that the adoption of bitcoin is constantly growing from investments to international trade and other consumer goods. “In recent weeks, PayPal and its subsidiary Venmo have begun acquiring bitcoins with a view to accepting them as payment next year,” he added.

The strategist warned central banks to be more aware of their monetary policy if they want to maintain their position in power:

“Bitcoin’s rise may still be a bubble, but even if it does burst, the skyrocketing rise in cryptocurrencies this year should be a warning to government money lenders around the world, especially in the United States. Do not assume that the traditional currencies are the only store with value or exchange that people will fully trust. “

Source: CoinTelegraph