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As a result of the COVID-19 pandemic, we're entering a recession in the world's economy. The US and some other countries are printing money like crazy, leading towards the inflation of national currencies in such a short time. For long, the US has been the leading economy where many countries rely on the USD as the reserve currency in the world. But all of this may soon change, as people are starting to lose trust in The FED. As the US economy plummets, the world will be looking for another substitute of the USD as the reserve currency for the global economy. Depending on how long the outbreak lasts in the mainstream world, the process of the USD's collapse will be either a slow or speedy one.

If the world replaces the USD as its reserve currency, things might change drastically for the global economy. My guess is that either the Yuan or the Euro will become the successor of the USD in the future. Long before the COVID-19 outbreak began, the USD has been in a constant decline in value. Now that COVID-19 has negatively impacted the economy, the USD's stance could be threatened in the long term.

What are your thoughts? Will COVID-19 destroy the US' economy, leading to the rise of another reserve currency (especially when the US is the #1 country with coronavirus cases)? Or will the USD still thrive? ???

Dude,stop preaching about things that might not happen.
The US dollar will remain a global reserve currency with or without the corona pandemic and the corona recession.The US economy is still the strongest economy in the world and the majority of the people around the world trust the US dollar,because it is a well known and stable currency.
I'm not advocating and I'm not the biggest US dollar fan,but this is the reality.The euro and the yen aren't even close to the US dollar,in terms of global usage.

My thoughts:
Not yet. Covid will pass and everything will go back to normal. But not for long. Damages made are irreversible (not only covid but also 2008 crisis mistakes and decades of current economy system) and after 1-2 years of slow bleeding things will speed-up. Leading economy (most likely China together with Russia if we will not see global military conflict before) will choose new reserve currency (and settlement currency for markets like OIL). It will free a huge amount of dollars that will flood the system and cause hyperinflation. I will buy 100 million $ and use it as wallpaper in my room.

https://upload.wikimedia.org/wikipedia/commons/thumb/f/ff/Bundesarchiv_Bild_102-00104%2C_Inflation%2C_Tapezieren_mit_Geldscheinen.jpg/220px-Bundesarchiv_Bild_102-00104%2C_Inflation%2C_Tapezieren_mit_Geldscheinen.jpg

I don't think that euro will  play any important role in future economics. I bet the eurozone will collapse just before or after the dollar.


The US unemployment rate
https://i.imgur.com/Y8vUqV6.png

$3 trillion print:

https://i.imgur.com/QfVrtt0.png

This is close to 4% of whole world money supply printed by FED in last 2 months.

the broad money supply ($80.9 trillion). (https://www.businessinsider.com/all-of-worlds-money-in-one-chart-2015-12?IR=T)

I don't think that Covid-19 will destroy the US economy, but if the Covid-19 stays for a long time, then that could be possible, and not just the US but the other countries will have the same. All country will face a constant decline in value as you said, and we might need something that can replace all the currency. As the big power country, the US will do anything they can to prevent the collapse of the economy in their country, and they will survive in the pandemic Covid-19.

I am among those who hope that the dollar will no longer be an international currency, but in reality, there is no country as strong as the United States today. Although in terms of trade and finance, American domination has been shifted by China, but the Dollar still controls more than half of global foreign exchange reserves. While the Euro is only one-third of the dollar portion while the Yuan contributes one-hundredth of a dollar portion.

The main legitimacy of the dominance of the American currency in the world is MILITARY POWER. The number of countries in the world is around 200 but America has almost 800, military bases outside the United States, besides that the US military budget is super WOW.

America is a country whose grand plans strategy has not changed since the first world war namely control of world wealth and America will keep it forever in American hands. America with the shadow's support is a force too big to conquer. China is indeed now challenging America but China itself with OBOR is happier if the dollar strengthens and even deliberately often weakens the Yuan currency for trading profits.

Germany and Japan as countries losing the war in the shadows of the United States while Europe also needs America to balance Russia's power, if the third world war really flares up.

Do you think that US military power will remain as strong as it is now with 30% unemployment rate that will stay like that for months? Who will pay for this? Printing has it's limits. When USD supply will increase 10-20% annualy countries will start to move money from dollar to other assets/currencies. That's why i posted that it will take up to 2 years for things to speed up. That's just my thoughts. I'm interested in yours.

The USD looks pretty strong to me.....

The US dollar is still king during the coronavirus (https://www.cnn.com/2020/04/17/perspectives/strong-dollar-coronavirus/index.html)
Dollar Reigns Supreme During Virus Crisis With Yuan Stuck in Shadows (https://finance.yahoo.com/news/dollar-reigns-supreme-during-virus-160000420.html)

Currencies of poor and developing countries are a blood bath vs. USD right now. The DXY is just the tip of the iceberg:

https://i.imgur.com/PRhdCaV.png

If the global economy succumbs to deflation, debt deflation will keep pushing the dollar higher. Longer term, 5-20 years maybe, the USD could start falling from grace. Presently though there are no signs of it, nor are there any real competitors.

Strengthening the dollar is something normal in the early stages of the financial crisis. I think it is not an indicator of how it will perform during crisis.

Just like bitcoin fail hard during Covid market crash and now fully recover. Dollar was strong during market crash and may sink during financial crisis.

Imo too much attention is directed at the United States of America, it's not an American pandemic, it's a global one and every country and currency is experiencing the downturn effects of this pandemic, even the Euro and Yuan you suppose is going to take over the USD's place as the reserve currency of the world is still below the USD and are also going to take steps back after this pandemic the same way the USD will, so there's no chance they are taking over now.
The United States basks in the strength of their defense force and this area is one that wouldn't be weakened even with all this economic crisis and unemployment going on. The United States is under the constant watch of alot of foes, so no matter the cost they cannot let their guard down in military strength/power.

Good thread on this subject: https://twitter.com/RaoulGMI/status/1254110879479746562

This is the key, and why emerging market currencies are performing so horribly:


Notably, the DXY was crushed after the bailouts of 2008 and 2009. This time, no. What changed?

The end of USD as the topmost reserve currency of the world is far from happening. The USD is like Bitcoin in cryptocurrency. The rest of the world's reserve currencies are like altcoins. While it is indeed declining as a global reserve currency, it is still maintaining a dominating 60% plus in the entire world's reserves. The second largest only comprises a third of that number.

The economy of the US is plummeting just like the rest. So I guess there is no need to look for a replacement.

So they are forced to print.

To save from depth deflation
To remain current military strength
To face 30% unemployment.

This is indeed a "doom loop" and it won't last long till huge global monetary crash (maybe not 2 years, but i doubt that nothing will change in 10 years time frame).

This has “never” happened and now we can see it again.  someone is engaged in printing money. Scared to death!
Not really. Drastic changes from changing one currency to another will add more problems than benefits. You will need to change a LOT of things and it is not cost-effective in the current situation. Decisions about the reserve currency are made over a cup of coffee in peacetime and not in the recession

The end should come, money cycles just means different standards have a limited lifetime, but don't count on the US dollar ending in our lifetime. For as long as we're still predicting 2025 prices in US dollars for Bitcoin, we're not ready for the dollar to stop being the benchmark for value.

I'd personally love to see things getting priced in BTC. Imagine moneychangers having a whole list of pairs against BTC!

But really. I'm not blaming COVID-19 for much, least of all when the economy's in this shitty state because of things that started long before a man in Wuhan ingested some exotic meat.

See I do think that the countries which are able to go through this pandemic soon enough will be able to make a greater impact on their economic situation , the country who recovers first will be able to provide greater care for the world , plus people will have a huge advantage over the US , since due to faulty administration plus corrupt politicians they are right now in a disaster which is not going to go away that soon .
They are trying to take help from the countries which they originally hated , this is pretty sarcastic.
I do believe that the dollar will loose its value , I do think it have already lost a significant number of investors and therefore it is undeniably a bad situation for them .

Even though it looks like USD is losing its position as a reserve currency, its still have lot more time to get replace simply because we don't have the alternative reserve fiat yet.Yuan will never become a reserve currency because China's transparency is a big question then no country will agree on getting paid in that currency.

That's reasonable.

Even if this is the beginning of the end for the USD as world reserve currency, it won't happen overnight. During the entire interwar period between WWI and WWII, the global monetary system was in a state of flux as the world lost faith in GBP. It wasn't until Bretton Woods was established in 1944 that the greenback's dominance was solidified.

For now, there are no potential replacements. It will take a few years at least to see what contenders emerge, in terms of reserve numbers and transaction liquidity.

For USD to stop being world's reserve currency, some other currency must take its spot. So far there are no serious candidates to it, China's economy is much more fragile than economy of the US, EU takes very passive role globally and is at risk of being torn from inside, Britain is barely a global power anymore, Russia's economy is a joke. You are so focused on the US and its problems that you don't notice that the rest of the world isn't doing well either.

Do you know that at the same time USD rises and strengthens its' value in some countries? Can you imagine that even though USD is printing money like a rocket, it's gaining value in some countries? Sounds paradoxical?
COVID 19 Won't destroy the US's economy, who will lose right now, is china. The USA and Europe will have financial resources to move factories from China to other countries and also there were some rumours that they are going to move pharma manufacturing services from India too. This will happen, with a lot of printed money or not, but will happen.
US economy is big and a lot of countries depend on it. The US is printing money for a lot of times but it still has good value. When are we waiting for crush? People are saying for years that there will be a serious crash but when? And why? Currency's price is a psychological factor too and The US will remain it strong.

davis196 said there that USD is still the most trusted currency too in some countries and is considered as a stable currency.

Despite the fact that the USA has one of the strongest economy in the world, US dollar becomes weaker. My personal opinion any form of fiat isn't good as reserve currency.

Not happening.

The demand for USD is not going down, only up and the recent events (covid19) drove the demand even higher. (people buying toilet paper and other shit via USD, not crypto or gold)

Because the demand goes up, to keep FIAT inflated, they print even more.

You may wonder, this has to end at some point. I'd say yes but not soon because neither crypto nor gold can replace FIAT.

On the other hand If USD goes down, everything else will follow it. (GBP, EUR, JPY, CNY etc.) That means the total collapse of the world financial system. In a time like that, let alone crypto, even gold may not survive.

Not yet happening though. USD is used everywhere, we even use it to trade in crypto. If COVID is going to really end its domination, it will take years and years. But as China keeps growing I would bet for Yuan since the Chinese are the most aggressive in making their fiat to be used. Most of the countries are going to import products from China, we all know we need yuan for that to take place. 

It already destroyed their economy as to my perspective.

When they used Quantitative Easing, they already started to destroy their economy. For sure this move by the US Government will have a big impact for them for a long time. Now with the question if there will be another reserve currency that will arise. I don't think that it will happen though. Take note that Trump is their President but he is also a businessman and he knows anything about money. I know for sure that he will make a plan to be #1 again in terms or economy.

Give up in praying that the US economy would collapse from just this. They've pretty much been at the top and I'm pretty sure rarely does other comes close to them. They have quite a big of a breathing space imo, and even if we do say that the US economy is desperate right now cause of the COVID, they'd probably pull something out to fix the problem. They pretty much hold too much power that a setback like this doesn't seem likely to affect them much. Sure, on the surface it may seem like it's actually being destroyed, but who knows, maybe that's what they want us to see. Sides, if the US dollar was to collapse, it wouldn't come from a sudden bout or in an immediate impact, it'd be gradual, slowly and surely and at that point in time, even if the US wants to act, they can't. They'd probably just hold the last edges of the ropes before thoroughly collapsing and being changed by another country as the top.

That could actually be very bullish for gold and crypto. It may sound crazy now, but consider how much value is stored in reserve currencies. If there was a true systemic collapse in fiat currencies, that value has to go somewhere. A return to commodity money makes more sense than anything else.

I see a depression being bearish for BTC for the same reasons they are bearish for stocks and commodities, primarily deflation. A total currency collapse is a whole different thing.

Definitely not in the short or mid term and I am still not convinced it will be bullish for crypto&gold in the long term. Is it possible for the long term? Maybe. The odds are not zero.

The value has to go somewhere but where? Let's see the possibilities:

1-I'd say gold at first but what good it is if you cannot spend it? It is impossible to spend physical gold. Try to get a burger from the mcdonalds and lets see how it goes. Gold has zero real life usage as a currency.

2-Crypto has better odds there when it comes to usability but what crypto lacks is, "trust" which gold has ultimately. People are not gonna immediately trust these new anonymous magic internet currencies especially when shady stable currencies like tether is around. (also it is still not clear how bitcoin is going to handle world demand as a currency. layer2 looks promising but...)

You may say, well they are already trusting the FED you can't get more stupid than that but it is adopted. That stupidity became the system itself.

3- The value goes to toilet paper which actually makes the most sense. By toilet paper I mean anything that has a real life use. Dry food, paper, water, land etc.

IMO, It's possible that Yuan may replace USD after the covid19 pandemic where all nation's economy is suffering due to the global economic recession since as of the moment we are still in recession and only a few just started to open their economy and first of these was China. While we are still in recession China already started to recover and the US is still in a battle to defeat the pandemic and that makes China become ahead of us.

Though China may be ahead for the meantime US will be able to cope up for they're the most powerful country in terms of military and etc, as soon as the US defeated the pandemic rest assure they will do an intensive action in all aspects including their economy and will prove again that they are still the strongest.

China's top military officials and Indian defense intelligence observers analyzed that the strength of the American war declined sharply because COVID-19 was only 30%. Several countries took military action together to test the readiness of America when contracting a pandemic. China deployed to the South China Sea, Iran maneuvered in the Strait of Hormuz, Russia took action in Vladivostok, and no less North Korea. Many American aircraft carriers, US NAVY, are currently unable to sail anchor at sea in the Pacific due to Corona.

The American principle as the winner of the war is "the winner takes all" and according to George F Kennan's statement that "we want to keep it that way forever" in which America controls the world's wealth, whether it is through warfare combat or non-combat warfare.

So far, many have seen the corona phenomenon as China VS America. Though the two countries are only a proxy of the shadow people who are behind them. If you feel the current situation the globalist shadow in control compared to the orthodox shadow. It's about who is actually in control. America became a superpower by design from the shadow group. The American military will remain strong especially if Trump wins in the second round. Economists at war will be implemented as when America entered into world war two, which brought America to become a world superpower and dominate the military, politics, hegemony, economy, currency, and technology.

If Joe Biden wins, it means that globalists will get a red carpet and a 7 billion soul vaccination program and a world control agenda with big data will be easier. The globalists want decoupling from fossil fuels to renewable energy such as batteries, the grand plan protocol has been implemented by China. The shape of the world will be different and the epicenter of the world will change.

The American military will remain dominant as long as America is still used as a proxy, the military is the guarantor of the country's sovereignty and has a high deterrent effect in all fields. For information, America made the space warfare program.

"The US can print a lot of money, not inflation. Why? Because other people need US dollars, not just the country".  the whole world of trade life (oil and export/import transactions) has been controlled by the US Dollar, it is difficult to change it because it has been running for decades.  it takes cohesiveness from all over the world to bring down the US Dollar and that is impossible because America's friendly countries will definitely not want to do this.  The US Dollar will not end..

Chinese Yuan will not be able to replace the US Dollar..  since the beginning they always spread their falsehood is actually an artificial strong country, China pretends to be strong when in fact fragile, some time ago they announced their economy is growing, my question is whether this is true when export/import stop they even claim to experience economic growth..

How can you possibly come to that conclusion when Europe and China are/were being hammered by the pandemic as well?

As long as USA still stands as world's biggest power even against China, we are not going to have anything like this at all. USA is just too powerful and I feel like there is really nothing we could do to make them stop being this powerful neither, only they can drop from that position, we can't make them drop from their position. They have way too many companies that have too much power all around the world.

You would think having trillions of dollars in debt to whole world would mean the end of dollars but the reality is they also have trillions of dollars investment all around the world as well, so when other nations even try to get better, that equals USA making more profit from those nations as well, so they can never be done by other countries getting better.

Exactly this.

The part with China is true too.

China needs USD more than their native currency CNY. The truth is everybody needs USD. Everything is being priced with USD. Countries borrow USD, loan USD. All books are kept in USD.

And people say USD will collapse. Sure thing.

It is not impossible but like I said, USD collapsing means we all are going down with it. Nobody can survive a mess like this.

Confidence in fiat money (not necessarily third party trust) would collapse. Physical gold is obviously out of the question, but gold-backed or silver-backed notes are not. I don't see gold (or BTC) becoming global reserve currencies, but I do seem them potentially becoming global reserve assets.

While I don't think we'll see a return to an actual gold standard for sovereign currencies, it's possible we'll see a hybrid system develop where currencies are linked to baskets of assets held in central bank reserves. That seems like the most obvious knee jerk response to a collapse of free floating fiat.

BTC is quickly becoming accepted as a legitimate asset class alongside gold. It could someday fit into the above paradigm. Whether it does largely depends on when such a collapse occurs. Tomorrow vs. 20 years from now would make a world of difference.


In the immediate term, that's what will probably happen. It would be chaotic and the market would primarily be concerned with basic needs. Eventually a new monetary system would rise from the ashes though.

Unfortunately for US haters, this scenario is happening only in their head!
Even Coronavirus Couldn’t Stop the 2nd US Carrier Visit to Vietnam (https://thediplomat.com/2020/03/even-coronavirus-couldnt-stop-the-2nd-us-carrier-visit-to-vietnam/)


And, they opened and? They are manufacturing stuff for?
For Europe and the US who are still almost closed down and don't want anything?

This is the same bs the communist were feeding us before in the 80s, we were producing tons of things, every factory was breaking records after records, but nobody was buying our crap and we were dirt poor but we were producing things.
China’s manufacturing weaker in April as virus hurts exports (https://apnews.com/d5327d8ac7ea46a4a3f39be6d1057f9a)


You don't have to be a genius to understand that you can produce 2000 pairs of socks next month, that doesn't mean you're a successful business until you manage to find somebody to sell to at a profit! You've opened your hotel, does it mean you will get $ as you used to? No, you need to have the same number of guests as before first!
The global economy is not as simple as that, lower demand in economies worth 30 trillion a year might hammer manufacturers in east Asia to bankruptcy, there is no winner here.

The current financial system demonstrated its inefficiency in 2008, but USD is still a reserve currency. Why should Covid-crisis be much different? The entire world is entering the recession too. It isn't the  dollar apologetic polemic, it's a fact that there isn't a worthy alternative to replace it.
I've also read some analytics about the possibility of returning to the gold standard. If it actually happens, it will stop the dollar from free fall and made it the better reserve currency.

There is indeed not a better alternative but gold standard isn't making a comeback neither.

If we go back to the gold standard these are the possibilities:

1-They'll refuse to audit their assets. > instant red flag

2- They'll let it to be audited but they'll cheat by hiring their own guys. You won't be able to see the gold yourself. > may go smooth for a while. tether is doing it already with btc/usd
(Seeing don't mean shit anyway, you need random samples from the bars)

3- Everything will go smoothly but then, gold will be banned completely except for the industrial usage. > didn't work before

USA already went with the 3rd option before and it didn't work.

Why did they choose the 3rd? Because they knew the first 2 options were straight outta dumb.

I think it’s a very interesting discussion what the US should do next as to how to stop the USD from going into a free fall.
It’s understandable that they want to print money to help the economy but printing money is never the solution cause it always causes inflation which is a bigger problem in the long run hen the recession will cause if you do nothing. I like to compare it with monopoly when you are playing and you cheat by taking some more money out of the bank at first nobody will notice and the game will continue like normal but later on in the game it will get obvious that there is way to much money in the game cause money keeps being added each time you pass start, I like to see this as the normal inflation, the inflation that everyone can handle and makes it possible for the economy to work but when somebody cheats by stealing some money out of the bank, or in this case by printing a whole bunch of money, it shifts the playing field in favor of the person who cheated. This can cause big problems in the long run as the money from the other players becomes less valuable. What I’d like you to take away from this is if the US government keeps printing money like it has been doing the last couple of months there is a big chance that is following in the footsteps of the Venezuelan economy only this time it’s not just one country which is going down but the world wide economy as economic markets are now so much connected that everything has consequences for everything.

Americans participate in crypto quite a lot but the government does not like it. That is why many projects and exchanges often embargo Americans trading or investing in their projects.
Although the Corona virus epidemic is devastating the United States, I still believe that the USD is still at its peak. Everything will soon return to normal, Trump is a very good president of the economy, he will revive the whole economy.

I agree that it comes down to oil settlements. At a minimum, a reserve currency needs to
1. be stable and of relatively high value
2. have enough supply for the entire world
3. have enough liquidity for the entire world

Right now, the US dollar doesn't have enough of any of these things.
1. It hasn't been backed by anything real since 1971. People say the dollar is backed in oil sales, but commodity sales are not legitimate backing for any currency. Backing is like collateral for debt. In fact, one of the reasons the US dropped the gold standard is because lending nations knew the US did not have enough gold to cover its debts after the Vietnam War. Using the dollar to settle oil deals creates ongoing demand for it, but it does not provide real collateral. So the idea to back the dollar in oil sales was never legitimate, especially now that we've seen negative oil prices for the first time. On a side note, I bet the US never does pay the majority of its debt. Several years ago, when Christine LaGarde was still with the IMF, she made a comment (in reference to Greece) to the effect that most of this debt is never going to be repaid. I'm not sure how they intend to settle the massive amounts of sovereign debt out there right now, but I sure hope it doesn't involve the use of militaries.
2. There is a huge supply of dollars, but there are still dollar shortages internationally, right now at least. Smaller currencies are collapsing and need dollars to get them through this period. If nations aren't able to acquire the numbers of dollars they need, they will begin to lose faith in it and try to find something else. If enough of them start trying to find an alternative to the dollar, they will eventually succeed.
3. The current liquidity problems have been going on since about 2007 (maybe a little earlier). If you look at the Fed's Total Assets chart, you'll see that it did not return to normal after the Recession officially ended, and lately it appears to be spinning out of control. Quantitative Easing, in the amounts needed, would diminish the value of the dollar. Too much more liquidity would lead to less stability. I like the Weimar Republic photo in the comment I responded to because it appears to be the path the US is taking, possibly on track for one century later, almost to the day.

Then why is the dollar still the reserve currency? Because there is no alternative. The high demand is keeping it stable for the time being, like a self-fulfilling prophecy. No other nation or entity has a currency that could take the dollar's place. In my personal opinion, the world does not have any real reserve currency right now at all, and they are simply using the dollar as a default for lack of anything more suitable. Interest rates may go negative, or even if they stay where they are, the incentive for nations to use the dollar is already diminishing.

The biggest problem for the US is that it is trying to run a global currency and a domestic currency with both the global and domestic economies hanging from thin threads. And while all of that is going on, it is now subsidizing a collapsed bond market. All the so-called Fallen Angels that have been downgraded to junk are valued in the trillions of dollars. The dollar is also political power as it is used to enforce sanctions. So there is the political facet of the whole thing too. All of this is too much for a central bank to manage. It isn't possible to juggle all of that with the few tools the Fed has. I think the US domestic economy will be the thing that goes into freefall as they try to prop up the others.

Yes, the more we learn about the US, the more we realize that America is too powerful to be challenged or even defeated. The United States military and it's super wow budget proves that American concentration is maintaining its prestige in the field of defense and security. Not to mention the haves who support America for their interests.

The United States is an architect in the global political system which is evidence that American influence is global. Starting at the UN and the UN security council, the World Bank, the IMF, and NATO. And always has a veto in the organization. Not to mention Currency domination which makes all acts of dedolarization only limited to dreams.

Until now, I have not found a weak point in America, the effect of which is only deadly for the United States but cannot be exported to other countries. America has begun to build India to become an American proxy against China in Asia. America indeed plays god-level politics or indeed officials in other countries do not understand geo economy, geopolitics, and geostrategy.

Weak points against America may not be visible to all of us but power shift from America to a new country or to a new entity may happen in at any time unexpectedly. America is enjoying being a super power without any major production or they are producing only top cream level of things and not the life's essentials. Still, they are able to hold the super power status. I guess when any country which will rise due to actual economy growth then America may not able to hold its power.

There are lots of possibilities dollar to be replaced by bitcoin at least for the part of medium of exchange. I guess the powers of America may be shared by more than one entity in coming years. It will be like USA may not remain as a super power but there are other group of countries will be having that status.

So you believe 7 billion people will be using btc in the future as their main currency? Do you think even 1 billion is achievable?

I don't believe any crypto can scale that high without losing its decentralized nature.

Power itself is centralized.

If power shifts from America, then the other country who grabs the seat from the US will be issuing its local currency as the next reserve currency. They won't suddenly start believing in decentralization and decide to share their power with everybody else.

It doesn't work like that.

If China somehow manages to overtake USA (tbh I don't see it happening), the next major reserve currency will be the CNY*. Whether it would be gold backed or not, I don't know. Probably not.

Bitcoin is a direct threat to the governments as long as it is not manipulated or hijacked. No government can afford bitcoin to become too big.

*Again, CNY gold backed or CNY as crypto running on a blockchain, it doesn't matter. It will be still CNY and the Chinese Government will have the rights to do whatever they want with it. (Using CNY as an example, replace it with USD if you like)

The USA was very clever when they influenced other capitalist countries to accept the US Dollar as a global reserve currency. Yes, the US has managed to keep the US Dollar as stable as possible, but the cracks are slowly being exposed now. You can only manipulate a Fiat currency for a while, until it starts catching up with you. ( The latest economic stimulus programs has shown how vulnerable the US economy is and how desperate the US Reserve Bank is to hide the cracks )

Will Crypto currencies replace the US Dollar..... nah, I highly doubt that, because they (US Government) would rather develop their own GovCoin to replace the US Dollar. It is more about control than the national pride of being a global reserve currency.  ::)

If we're talking in the context of contemporary monetary policy, the CNY has no chance. With their export-based growth model and history of consistently devaluing the Yuan, it's just not attractive to hold. It's one of the reasons Chinese wealth is characterized by constant capital flight outside the country.

We also can't discount the growing distrust in the Chinese government being seen around the world today.

The dollar will remain the world's reserve currency, despite the coronavirus. Because to replace the dollar, you need something similar in value. What can you suggest? Maybe yuan? Which can depreciate if the central bank of China wants it at the click of a finger?

And India should welcome this move with open arms!
Let's compare Chinese influence vs American influence in Asia, North Korea vs South Korea?
Don't you think India needs a change like this one?

https://i.imgur.com/RW0INPz.png

What would India gain from bowing to China and make an enemy of the US? Nothing!


Yeah right, 133 billion in food exports are probably nothing essential. Nor are the 60 billion in pharmaceutical products.
Do you actually believe that nonsense?
That those 2.5 trillion in global exports are making up all the stuff people buy in economies worth 30 trillion?

This is a good article (https://www.lifewire.com/where-is-the-iphone-made-1999503) to get over the "everything id made in China"


Here is one question for you, what is that real thing which is backing up BTC?  8)


Now? Impossible! And is not the technology is stopping us but knowledge in some and in a lot of cases actual need.
For people that aren't making international transfers and are not looking for 'investments" cryptos in general not only bitcoin is actually useless, not to mention the troubles some have in actually buying and handling them. So, if you're happy with your bank, you don't care about confiscation of funds, inflation, etc etc, you won't be tempted to use it.

But I think that scaling is achievable, not now, not in 2 years but with progress in technology and with a new generation coming up that has grown with computers from an early age some huge numbers might be achievable. Of course not 7 billion, that will never happen,  but numbers in hundreds of millions might be possible.

LE:
As you've replied before I was able to fully edit my post!

Get that thing out of my face!!!!!  ;D ;D

Very good question. First, I'd like to make it clear that I didn't mention bitcoin in my original message. But I don't think you can compare a fiat reserve currency to a cryptocurrency. They operate in different ways. For example, the US dollar is controlled by the Fed. A central bank is an economic institution that serves political purposes. Human beings are behind the decisions that affect the value, liquidity, etc. of the US dollar. Bitcoin doesn't have those problems. It does have rules in place, like the recent halving, but there are no surprise rate hikes or cuts, no sudden unlimited QE that has to happen in order to prop up markets. When foreign nations decide to use something as a reserve currency, they need more than just someone's word that it will hold value, because they know the human beings who are controlling it probably aren't completely honest, and they don't really know these people are competent either. Human decisions are not predictable, and a currency, especially a global one, needs to have predictability. Central banks have essentially turned currencies into commodities. If you remove the question of human decision making so that the whole world could know ahead of time how the US dollar would behave moving into the future, nobody would care very much if it is backed by anything.

Your question brings up some other valid questions of course. What backs gold? What backs all those stablecoins that claim to be backed by the US dollar? If the dollar isn't technically backed by anything, how could it back a stablecoin? Perhaps the dollar is partially backed by the demand created by those stablecoins. Will bitcoin ever be a reserve currency? If the US goes through what the Weimar Republic went through, what would the world trade in? If you think "it can't happen here", remember that it couldn't happen there either, until it did.

I think those are the big questions as this topic relates to bitcoin. A reserve currency needs global trust, but more importantly the world needs to trust what is behind a reserve currency. It isn't the dollar that people don't trust; it is the Fed. Bitcoin isn't inherently more trustworthy. The reason it seems more trustworthy is because it doesn't have a central bank.

It doesn't have them right now, but the first rules were set up by people, the next batch of rules can also be set by people you liking it or not.
If you didn't like segwit you were free to switch to shitcash, but is this real freedom with nobody imposing rules?
What if tomorrow the whole team behind the actual bitcoin with all the miners decide that the reward will be tripled and the supply raised to 210 million? What will you be able to do against? The harsh reality is that nothing!!!

Why is bitcoincash priced at 250 and bsv in 200$? Because of the code behind it? Nope! Because of the people behind it? Nope again!


So...it has value because people trust it no matter who prints it?
That contradicts a bit the first part of your post, how can you dislike and distrust the FED but still have trust in their tool?  ;D

The explanation is pretty simple, people don't care who is behind any of those! Dollars, euros, gold, coins! People care that somebody will accept this thing in exchange for a different thing of value and when this trust is gone so is the value, that's why bitcoin price decreased that's why it jumped back again, nothing fundamental changed about it, right? The single fact that changed between 2016 and 2020 is the perception of the masses and that will give value to anything, from potatoes to beanie babies!
 

You mean the US defeated after a 4 years war happening at its borders, a pandemic ravaging the country, lost territories to its neighbors, war reparation to Mexico equaling 10% of its GDP and occupation of Michigan and New York by Canada?
Nope, trust me, this won't happen!  8)

USA is just way powerful when it comes to economy and that allows them to be strong when negotiating with other nations but do not forget that they are also militarily very strong as well. Not that we need military anymore as much as we did hundreds of years ago, but there are still ways they could help you, for example by giving you weapons and planes and bombs etc etc which would help any nation to be basically have enough ammo for a war, or at least not lack ammo, except against USA.

So, USA would always be the biggest nation and USD will always be the reserve currency. Even when you think about tether, you are thinking about dollars, its not a stable coin that is stable to anything crypto, it is a stable currency that is pegged to dollars.

It is quite sad, but you are mainly right.
Except one moment - now USA made the decision to print a lot of money in order to give out to their citizens.
What does it mean for usd holders out there - they've lost some value of their assets on hands which really sucks.
This made a lot of investors will to exchange their usd to prevent further losses (which is absolutely adequate).
So by that I mean - crypto could really become one of the main hodl instruments in nearest time

Its kinda fun reading arguments whether USD will decline because of the Pandemic. But one thing I've noticed is that not just US' economy has been declining because of the pandemic but all the other countries hasn't been getting any income because of the pandemic. I might sound like a noob right now but isn't US really rich? Like they have a huge reserved money and for me, they still might have the upper hand once the vaccine becomes ready. :-\

As long as major assets like RE, food, water etc don't get affected by the inflation, I'd say USD hodlers doing just fine. The RE prices are in a bad shape though but the good news is it corrects itself from time to time.

I believe most USD holders hodl at least some gold too and it spiked up recently and probably made up for their losses in FIAT.

The good thing with USD is you know how much it's value will be tomorrow. It will be slightly less than the yesterday's but you don't care anyway. Other assets might be worth more or less, you just don't know it.

Gold is close to its ATH now but the correction happened years ago was painful af to those who bought from $1800. I know friends personally that cursed gold forever and we are talking about gold here, not even crypto. Think about how they would feel about bitcoin's corrections.

Despite the US being the country with the most cases of Coronavirus, it still doesn't mean that the US dollar is going to fail. A lot of people still believe in the USD and will choose it as their reserve currency over any other currency in the world. I still hold some dollars despite the situation, and to be sincere that's one of the best decisions I made at this time, because the value of my country's currency depreciated during this pandemic. So, imagine that I never chose the dollar as a reserve currency? I would have been losing a lot. So, the USD is still good and it's not going to fall.

I believe it would take more time before USD to be losing the status of world reserve currency. Only rise of some other currency will trigger and NOT just USA's collapse. The current slow down is global and not specific to USA which means USA will remain as top rated in terms of economic strength and may get recovered like any other country. I mean it is too early to think about end of USD's reserve status.

That's certainly true, mate. While there is no other country as strong as the United States, there's a possibility it could "fail" in the long run. After all, empires have come and gone over time. The Roman Empire was strong in its time, but it experienced its demise thereafter. This tells us that nothing lasts forever. The process of the US losing world dominance might be a slow and steady one. As the COVID-19 pandemic continues to harm the economy, the FED will continue to print money to no avail. Inflation will rise like never before, weakening the value of the US Dollar. The effects will be worse the more the pandemic lasts in America.

Remember, the United States has far more people with COVID-19 than other countries worldwide. The difference is by a large margin. I believe that other countries with lower cases of COVID-19 will be able to manage their economy better, being at a better stance than the US. As China is getting closer to launch its own "digital Yuan", it might become the next reserve currency of the world. It'll be survival of the fittest as the US and other countries fight their way towards supremacy. The country with the leading edge in military, and most of all, technology, will be the one that will dominate the world's economy.

Maybe I'm wrong, and the US sees the light at the end of the tunnel once COVID-19 fades into oblivion. For now, we'll be living in uncertainty until a vaccine or cure against COVID-19 is released. If the world's economy continues to collapse even after COVID-19, then Bitcoin and other decentralized cryptocurrencies will be the safe-haven assets of choice from people in the mainstream world. Just my opinion :)

It's funny but it's true. If US print money, other currencies lose value. That's by design in the current financial system. And that's why we are in crypto to bring the new age financial and monetary system for the future.

Yep, it's literally the opposite of what most gold bugs and BTC investors think:

https://i.imgur.com/hyGS7CC.png

Illuminating thread on this subject: https://twitter.com/RaoulGMI/status/1254110879479746562

Basically, it's due to the global debt bubble, which is mostly denominated in USD. As deflation hits, cash flows decline, leading to a game of musical chairs as debtors need to exit their local currencies to service their USD debts. This could have a crippling effect on emerging economies if global recession becomes global depression.

Unfortunately for Americans who are out of work and can't make the rent, this doesn't equate to a blank check on fiscal debt. There are fears of Japanification. (https://www.marketwatch.com/story/heres-what-a-japanification-of-the-us-would-look-like-2019-12-09) Republicans are stonewalling spending on the fiscal side, the only thing that can bring real economic relief to regular people absent a miraculous V-shaped recovery. That only leaves Fed meddling: cheap credit for banks (as banks tighten credit for consumers) and pumping bailout money into zombie companies. ::)

The situation is fucked for everyone. All we can do is hope the economic downturn isn't as bad as feared.

This ain't gonna happen except the US stops being the world's most powerful nation.

Maybe I will surprise you, but if the United States slides into a recession, then the rest of the world will be there. Since the dollar is the main world currency, and in the event of any fluctuations with it, these problems quickly move to the rest of the world.

The USD will surely be seriously affected after the epidemic is over. In the coming time, if the US still cannot solve the unemployment situation of the people and some medical equipment, it is likely that FED will have to print more money to support the economy again. I feel the US is losing its position before China and it is no surprise that Yuan becomes the most valuable currency.

Although the current situation is much worse it will be restored as soon as the epidemic ends. The use of the US dollar is declining due to the epidemic in the world everyone is trying to print money. When the effects of the virus subside everything will return to normal.

I'd love to believe it.
The situation with work is really catastrophic, and printing money alone cannot solve the problem. We need to start the economy as early as possible, but without a threat to health

Agree. There was a dollar shortage for years now. So even if Fed printed trillions, it did not matter as the market absorbed that supply. But it's not like the Fed can keep printing and keep pumping markets. They have great powers but everything is finite and has limits.
I think sooner or later, this will take an ugly turn and a long impact on economy in a negative way.

China and Russia, ready to see the dollar crash. And dollar can not currency for global trade forever. Things evolve, powers shifts, which force realignment.

Leadership in western worlds lacks vision to curb Chinese influence, and it might be already very late to wake up to that reality.

hoping the CIA to turn China upside down from within their country. Coming years will be so crazy and we all will see a big tussle to remain or become a superpower in the world.

Yes the US economy might be a little bit shaky now but that does not mean they will go flat. To me its kind of normal considering the suituation the world is in right now.  But it's just a matter of time and the US economy will pick up and they will go back to where they have always been, which is the top

America is hot because China has succeeded in shifting the dominance of trade and even the financing sector with the OBOR program. But I assume that America does expect an equal rival in order to declare war and after that emerge victorious. The winner takes all, with America as the winner, America has the authority to regulate. We can learn American customs when conquering Japan and Germany in World War Two.

America has indeed carried out many strategies to conquer China from the broken petal strategy, containment policy to biological war. But Xi is also a nationalist like Trump so he won't give up easily. China only imitates the American strategy and then modifies it by improvising. The November election was a scourge for Trump, he needed a victory card to advance to the second round.

Do you know how much of the US government's debt China holds? Over 1 trillion dollars, taking the second place among all foreign holders of the US debt (with Japan being a little ahead). Just curious if you are still going to support the idea that China is ready to see the dollar crash. And while many people naively think about how much America owes China, it is in fact the other way around. This "debt" essentially shows how much China depends on the US. Just ask yourself why China would ever want to buy US Treasuries (which this debt is mostly made up of)? But seriously?

And the takeaway is that if America goes downhill, China will follow twice as fast

I hope that the US sees the light at the end of the tunnel after the demise of COVID-19. Constant money printing by the FED will only worsen the US economy. The debasement of the United States Dollar might lead other world currencies to victory. China is already the world's second-largest economy, which indicates us that the Chinese Yuan might become the world's next reserve currency. If China's central bank manages to launch its own CBDC before any other country, it could lead the world's economy as we know it.

For now, we'd have to wait until there's a vaccine or cure for the dreaded coronavirus disease. Then we can tell how the economy will recover. The larger the unemployment rate in the US, the worse it'll be for the American economy. USD or not, I think that the world's economy will most likely remain the same. The difference is that we'll be living in a cashless society where paying with physical cash is no longer feasible. It may take a long time before the USD will lose its status as the reserve currency of the world. Just my opinion :)

Not all parties are happy if the dollar weakens. I, as an exporter, feel happy if my country's currency weakens in other words, I get greater profits, especially in the current pandemic. Likewise, with China, China will deliberately weaken the Yuan currency so that production costs are low and the price of Chinese goods can compete internationally.

De-dollarization who was previously voiced by China and Russia turned out to be a dilemma because after all the large dollar ownership in the country's foreign exchange reserves was a powerful weapon in maintaining economic stability and making it easier for the central bank to adopt market operations policies. A country must diversify its foreign exchange reserves to reduce its dependence on the dollar, including building a "shadow foreign exchange reserve.

1.7% vs 58% is a very big difference not to mention the other barriers even though China has this CBDC it will not mean anything in foreign countries. Let's say China wants to buy oil from Saudi Arabia, Saudi Arabia won't want to be paid with Yuan because Yuan won't be able to be used to make transactions with other countries.

The post below can be a reference

https://bitcointalk.org/index.php?topic=5235115.msg54121990#msg54121990

The dollar became a huge problem and there is no solution.

You can't remove it, you can't replace it, you can't let it become too valuable, you can't let it go too low. Whatever happens to the dollar, somebody is not going to like it.

https://i.imgur.com/6NZuK4V.jpg

It was a predictable event, no matter sooner or later. Covid crisis and mass protest undermine the US authority, so the dollar is loosing its value. I bet the new world reserve currency will be a certain CBDC.

There's a problem with this approach

And the problem is that someone's gotta pay for this "competitive advantage" as there's always two sides to the equation. Ever heard of the inflation tax? Right, it is the local population en masse who will be paying it. To put it in more mundane terms, simple people will have to work for free a certain amount of time for the exporters to obtain that advantage

USD is still going strong. None of the other fiat currencies are strong enough to offer any competition to the USD. CNY was one of the potential competitors, but its reputation is almost destroyed now. EUR and GBP were potential competitors, but they are also lagging behind now. JPY is still going strong, but it is not used much for international trade. And the cryptocurrencies are still in their infancy, being used by only a few million people.

Some people support the USD and some fought against USD. But all the time,USD is the king of currency in a world market.It had a control over all the currency and it only made the value of other currency.The price of many currency is based on USD .Bitcoin will be king in the crypto a like a USD in the market.

You can't end USD, this is the united states of America we are talking about, even though I hate most of their politicians and I am not from there and live in a country that is affected by them a lot, I have to see the fact that they are super rich and have too much money involved all around the world.

They figured out from England that if you have money but do not use it, that money doesn't mean anything at all, you have to invest that money into something and they did it for themselves for centuries but for the past 50 years they have been investing to other countries as well. So, either they get richer and prominent currency themselves or other nations go decent and they still profit from it as well. The economical power they hold is uncanny and even China who makes more profits do not have the same power.

I think the situation mentioned is very low probability of reality.  Personally, I think that the US dollar will continue to be used as a reserve currency for a very long time, regardless of the world.  Of course, if I need to evaluate according to today's conditions, I would like to remind you that this possibility of change can also occur with Covid-19 vaccine.

You are right that all these problems can be easily solved if the economy of the country improves. This kind of crisis is happening because the economy is disrupted The circulation of the currency depends on the economy of the country.

if the country is improving , that only means that problems are slowly being solved out  . you cant say that your going to wait for the economy to improved without doing anything because nothing will happen but it takes people action to see an improvement . we faced crisis due to covid and that makes the economy got disrupted , not the other way around .  currency cannot circulate properly now because like we said earlier there are still crisis . people are budgeting or hodling thier cash and others are simply cant earn

What I know about the inflation tax is a tax that is charged to all who have money caused by the printing of money by the government (Seigniorage). As exporters, even if we suffer losses due to foreign exchange differences, we must still send goods to importers. So when the dollar strengthens we can breathe easily to cover previous losses.

I am an exporter of fresh and frozen seafood. Not using imported goods or imported raw materials so that production costs are not too affected by currency fluctuations, but corporate profits depend on a weakening and strengthening dollar. In addition, the higher the income, the higher the income tax.

It’s true that a lot is going on in the US, but I wouldn’t say Yuan or any of the other currencies will overtake USD. I think their economy is really strong compared to what we have in other countries. There are lots of big businesses there. Majority of the biggest Businesses in the world, if not all, are all located in the US.

Things might have gone a little bad at the earlier time when the pandemic started, but I don’t believe that it’s the same now. Compared to my native currency, the dollar still appreciated at this time of difficulties, so it’s still strong, and I guess we should not spread something which cannot be taking place right away or may take a decade of time from now. Yes, I guess USD may remain as world's reserve currency for at least another decade as well.

The 80% of the world forex transactions done with US dollar and the most traded pair is EUR/USD according to Bloomberg. The comparisons are useless because the real value of USD is not reflected in daily transactions, so illusional value colors our eyes from an economic perspective. Spot forex numbers show the money flow towards to world's main reserve currency due to the "cash is king" ideology in recessions.

To do this, the dollar should not remain aloof from technological progress. Therefore, we will soon see that work on the digital dollar has begun. And there are objective reasons for this, which are related to the fact that the bill from the democrats has a proposal to create a digital dollar.

Inflation is inevitable and no country can run away from that. Stop saying nonsense things about the US government unless your country can perform better. No matter how this recession goes, the US will stay the same and it will always be considered as the strongest economy in the world. The US has been on top over decades and there are several crises happening before so that means they do know how to deal with this Covid-19 pandemic. Don't underestimate the power of them. Most of all, Trump is a businessman, he knows what is good for this country and also the world

USD is most trusted currency in the world !!! Coronavirus etc can''t damage USA economy so hard what dollar collapse. First collapse all other currency. Belarussian's, Russia's, Venesuella's etc...

 USD is a mirror of Real Economics !!! Economics with concurrency etc. Not devil economic like in exUSSR !!!! Most of exUSSR countrys managed by dictators ! Dictators is very bad for peoples living in what coutrys. Dictator's+monopoly's=Love forever.

Look now at Belarus and Ukraine-they are now fighting corruption and dictators !!! They will definitely win this fight from me !!! The dictator makes their "home offices"out of his country.

People's go away from dictators to freedom democratic country's !!!

Mikheil Saakashvili for ex. making technology how fight with corruption and this technology was imported some country's and fight with corruption in Ukraine now !!!

Okay, I do agree that USD is very strong and will probably stay as the worlds most prominent currency but there is really no need for the caps on writing and all the !!!! in the message. Just because USD gets less and less valuable and people are not really using it as an investment as much as they used to, doesn't mean that USA is a bad nation. That is one of the problems with politics as well, a foreigner, lets say a European could say that all the american politicians are horrible people but that doesn't mean they hate USA, they just dislike the presidents, I could hate Obama and Trump while also liking Americans.

You think we love our politicians or money? I hate my fiat, that is why I am using crypto, that is why my fiat is something I would never touch if I had the chance. So, please do try to calm down.

In my opinion, the economic crisis started before the outbreak of Covid 19. It was the US-China trade war when the US was at risk of losing its hegemony over the global economy. The Covid 19 pandemic only made the economic crisis come faster and faster. This economic crisis will have a much bigger influence than the 2008 economic crisis and we do not know whether the US or China are the winners. Personally, I think China will win this war, I will narrow down my business models, spending 30% to buy yuan, 30% to buy US dollars, 30% to buy. Bitcoin and the remaining 10% are cash. What about everyone's opinions?

I don't think the Chinese yuan is a good choice to save your money. As long as the Chinese government resorts to devaluing the yuan in order to increase the competitiveness of goods, you will only lose your money from such an investment. In this case, it is better to spend this 30% on the purchase of EUR.

There's no doubt that the USD is still the strongest currency in the world. But the fact that the United States of America has the most cases of COVID-19 in the world, might lead to its demise in the future. Compare the US' results in COVID-19 cases vs other countries and you'll notice that the difference is by a large margin. There are average 2 million people infected with the dreaded coronavirus disease in the US, while other countries are still in the "thousand" range. This large discrepancy in results, could lead to loss of confidence in the United States as the leading country of the world. If that happens, the USD might lose its status as the reserve currency of the world in a blink of an eye. The astronomical increase in COVID-19 cases within the US, shows lack of leadership. Other countries have quickly taken necessary precautions in order to contain the disease.

But who knows? Maybe I'm wrong, and the USD remains as the reserve currency of the world after the demise of COVID-19. We'll have to see how everything unfolds during the outbreak in order to determine the future of the American economy. With China already focusing on launching its own digital currency, the US might be left behind if it doesn't "modernize" the USD. A digital dollar implemented at the right time, could maintain the United States as the leading country of the world. Just my thoughts ;D

^ The US has most Covid-19 cases because they conduct way more tests than any other country, including China. If Indonesia, for example, has more testing capabilities, only God knows how many actual cases we have.

As for reserve currency, I believe no countries have only USD in their reserve since they use a portfolio from various asset classes. But sure, they store some portion of USD to stabilize their exchange rates against USD.

Anyways, the US still has the biggest pile of gold (the 2nd position not even close): https://www.statista.com/statistics/267998/countries-with-the-largest-gold-reserves/

US still in the position and i think after this usd is back again . Many countries have USD reserve for the trading and usd still in good value but we dont know how strong it is because pandemic in US continuously increasing. I hope soon US find a cure in this pandemic.

USD is strong for ex if will be war again, our national currencys will start move to zero, demand for currency of country's without war will be up...

USD is stron strong strong and stron again, because USA is most democratic country.

p.s. waste currency because of Politicians !!! This she*t people move country's around trash conditions !!!

That doesn't explain a high mortality rate

If there were more tests, the mortality rate should have been lower, statistically speaking. It is one of the reported reasons why the death rate is very low in Russia despite it being in the third place by the number of confirmed cases. More extensive testing allows to catch asymptomatic cases which otherwise wouldn't have made it into the stats. It also shows the real death rate, which is below 1%. An outbreak in an isolated shift team caused only half of the people to get infected despite everyone having been massively exposed to the virus there

I think we should not forget that this is competitive market so US government must try to continue their market of USD. You are thinking for USD! why not for EURO currency or others?  Everywhere there is recession with their currency. Yes, US govt may printing notes to save their economy but be sure that they will control their market gradually within very short time. So don't think otherway.

thanks.

in my opinion the Americans will not let that happen,
even though they are currently experiencing a terrible disaster, America is still very strong

The US economy will be destroyed not by COVID. The upcoming crisis is a result of the government authorities' stupidity. Why wasn't COVID so disastrous for China? Because they could prevent a real collapse.  

If the pandemic gets worse, then the global economy would be destroyed. The economies of other nations are not immune to the pandemic. So I am not of the opinion that the USD may get disproportionately affected by the virus outbreak. The United States Dollar is not doing that great. If you check the gold price, then it will be clear. But the fact is that the other currencies are doing even worse.

I do not think that it is the case, the reason that the crisis is hitting US hard is the fact that they did no have a comprehensive plan for this problem, the stocks went down because most of the companies have lay off their employees thus lowering their profit and in turn lowering their market value, China on the other hand have experienced so many novel viruses in the past and they have a huge population whiich means they have a huge consumer base and ther market wasn't that affected.

With China already focusing on launching its own digital currency, the US might be left behind if it doesn't "modernize" the USD. A digital dollar implemented at the right time could maintain the United States as the leading country of the world. (Just my thoughts)

The essence is not technology. But in the primary role of the dollar which supports 58% of transactions between countries in the world. although in the country's foreign exchange reserves there are other currencies but the dollar is still a stabilizer of a country's currency exchange rate. Many countries might want to de-dollarize. We take the example of dedolarization and use the digital Yuan. We must find a trading partner who is committed to be paid with Yuan. And of course, the country must also ensure that its other trading partners also receive Yuan. If the Yuan cannot be spent then the state cash flow cannot run either.

America has hegemony the money circulation system throughout the world through SWIFT. Cheap, fast, legally recognized, and integrated with banking networks throughout the world. The fall of the dollar is something that is not expected by many countries which means loss and even bankruptcy. In addition, based on the previous American experience in the great depression and subprime mortgages, I think the dollar will remain powerful. Currency domination is America's most important tool in controlling world wealth forever. So America will not stand still if its grandstand is disrupted.

That makes sense. As far as I know, some countries like China and Russia are manipulating COVID-19 cases for their own convenience. With more tests, comes the ability to detect cases of the disease at a faster rate than any other country in the world today. While the pandemic has negatively affected the US economy, the USD is still standing strong. For a collapse to happen, the economy needs to be in a recession (or depression) for a very long time. If the US is unable to recover its economy, then the USD will certainly lose its position as the reserve currency of the world.

It's only been 4 months since the pandemic hit the United States, so we'll have to wait how everything unfolds during the remainder of the year. One thing for sure is that China is one step closer to launching a digital version of the Chinese Yuan. If it becomes the first country to launch a CBDC, it could gain a competitive edge over the world's economy. The US needs to act fast by paving the way for the development (and hopeful) adoption of the Digital Dollar. Otherwise, the USD may see its demise as the dominant currency of the world.

Nonetheless, no one knows what will happen in this world of uncertainty. After the COVID-19 pandemic is over, things will never be the same as before. We will gradually shift from physical interaction, to a wholly digital one. It's a good thing that the US is the second-largest Gold holder of the world, which could give it an "edge" over a decaying Fiat currency. Either the US will recover quickly after all of this is over, or all the other way around. Just my thoughts ;D

I think the dollar will remain the world currency. But it is possible that in the near future a new currency will appear on the world market. This currency will be able to compete with the dollar, euro and yuan. I think the US economy is strong enough to recover from the crisis, but the risk of dollar depreciation is high enough.

The dollar became the world currency thanks to the economic muscle of the States

And it was a long process that had started off in the second half of the 19th century and took over 100 years, with the two world wars in between, from which Uncle Sam profited handsomely in every way imaginable. What it means is that a new competitor to the dollar cannot appear out of nowhere. With that said, though, we shouldn't completely rule out an alternative scenario either, which is about America losing its grip on the world on its own. But it's probably as unlikely, and will take decades to develop and unfold anyway (it took a few centuries for the Roman Empire to collapse)

If the yuan becomes the world currency, then we can safely talk about the complete power of China in the world.
I agree with the author that confidence in the dollar, as the world currency can be shaken.
The authorities should take measures to support not only the population, but also the economy.
I want to believe that they can overcome these difficulties.

There has been this sudden increase in USA hate since Trump became president, which I totally understand because I hate him as well, however people need to realize there is a big difference between USA and Trump. Just because he is the president doesn't mean he is all of USA, he is just an elected official and that's it.

USA is still quite strong in economy and the USD currency is still doing very well, hell they printed out 4 trillion dollars and didn't moved a bit, everyone assumed there would be high interest and all that but nothing happened because they have a strong economy. So, all in all I would say USA is still doing very well and world's reserve currency is still USA. I would say only thing that could change that is another nation going up, not USA going down.

Of course USA will remain as the world's reserve currency, that's what people think, but isn't it right to also consider other possibilities since the current state of USA now where they have the most number of covid-19 cases has also damage their economy significantly.

If their economy will fall, I think China would replace them in the top since China's economy is undeniably improving and they have handled the virus spread effectively with their successful protocol, once they lead the number of cases but they have contained it already now, while USA's cases on corona virus is still increasing and we don't know yet how big the damage it will contribute as it continues to rise.

We are just too confident with the US but if we look at the other picture, we might see their weakness, a strong country allowed the virus to spread this high, I don't think that's a good definition of a strong country.

At least, the USD is still going strong even when the pandemic took the world by storm some months ago. The mainstream economy is largely affected though, and if COVID-19 persists, there could be irreparable damages to the USD as the reserve currency of the world. I'm still very optimistic hoping that the US sees the light at the end of the tunnel. We might have to wait until 2021 for a proper cure or vaccine against COVID-19. After that, it's possible that the economy will gradually recover as people head back to their jobs. As far as President Trump goes, I'd say he doesn't influence the worldwide reputation of the country. As you said earlier, he's just an elected official and that's it. People are the ones who determine the future direction of the USA altogether.

As long as the pandemic is still out there taking thousands of lives, it'll be hard for the economy to get back on track. We need to be patient in order to achieve good results in the future. Some say that the world's next reserve currency might be the Chinese Yuan. With China already exploring the possibility of a CBDC, anything could happen in the next 1-5 years. Just my opinion :)

I believe USA has a very strong economy but given the fact that we are all suffering from this pandemic and don't even know when will this end, i think USA might really be affected but will still be able to overcome this resistance until everything will be back to normal. USD dollar has a very strong foundation making it as the world's reserve currency and with this, it cannot be ruined easily even a pandemic like this.

Right now, we're in a high period of uncertainty. The USA may have a strong economy, but it might not last for long. The longer COVID-19 takes to disappear, the harder it'll be for the economy to recover. If the USD goes down the drain, it might become replaced by another national currency. It looks likely that either the Chinese Yuan or the Euro will become the world's next reserve currency. And the former has better chances of taking over the world's economy than the latter. After all, China is already testing the possibility of rolling its own CBDC. If the digital Yuan becomes the first CBDC in the world, it might rival the USD's status as the reserve currency of the world.

All the eyes are on the US right now, as it's the country that's been mostly affected by COVID-19. We'll have to wait until all of this ends, in order to determine the negative impact on the US economy by the outbreak. Then, the USD could either retain its position in the mainstream economy or all the other way around. USD or not, I think that the world's economy will remain relatively the same. Just my thoughts ;D

The term 'victory' was coined rather than usurped, illustrating how American negotiations for European countries before engaging in the second world war and making the dollar an international currency. France, which initially refused, finally agreed with the American offer.

If viewed from the resilience and see the dollar is still a stabilizer of the currencies of many countries and 58% of the country's foreign exchange reserves are still in dollars, then the collapse of the dollar means the economic collapse of all countries whose foreign exchange reserves are in dollars. We assume the dollar loses half its value, automatically the wealth of many countries in the world is halved. For America it is very easy to overcome the weakening of values, only need to print more dollars. But how will the effect be on other countries including China?

Some time ago I had read an article from an Indonesian military observer, about the dollar reset value which is one of the currency war strategies that might be done by America to maintain its hegemony. Dollar value is only 1/2 and debt is doubled, for countries with high trade surpluses, it is safe to eat, because there is multi-stream income, for countries with a trade balance deficit will certainly be more vulnerable (faster falling). One way to withstand the collapse of the economy is with large gold reserves, if not possible to reset the price of the dollar that is possible is to increase the price of gold.

It would be interesting to know which country in the world can issue such a strong currency so that it can become a competitor for the dollar. Since you write that this currency should appear soon, it means that it is not available now, and the state that should issue it already exists?

It is not about a strong currency as such

For example, the Swiss franc can already considered one such currency, but does it make Switzerland an economic superpower like the US? Unlikely, if you ask me. In different terms, it is the underlying economy and its strength that would turn its currency into a genuine competitor to the American dollar. Is there such an economy? The European Union comes pretty close but they are weak in other important aspects (e.g. in terms of military muscle)

The fact is that the United States pursues such an international policy regarding international trade and lending to different countries that every country is forced to work with the dollar. Thus, the United States supported its national currency and it is valued quite high all over the world. but I read such information that in the countries of Asia and Africa there is a global shortage of dollar supply and therefore the United States is constantly printing new bills, and this creates very strong inflation. but nonetheless, as long as the United States is the real leader around the world, the dollar will have a constant and reliable value.

That's the right spirit

And everyone should put it into their pipe and smoke it. Well, the dollar may not have a constant value, of course, but it doesn't have to in the first place at all. What it has to, though, is to have America remain the dominating military and economic power in the world. As long as it remains that, the dollar will be strong, while its value can in fact be any. Under these circumstances, the dollar depreciation can even be considered an inflation tax levied upon the world

in some ways I think the dollar is not surprising. Whenever the world economy looks more risky, investors tend toward the greenback. The increased dollar government comes even when the US government has taken the previous action, the government's economic outlook. funded by a deficit of large-scale expenditure, but the effect will not be drastic in my opinion in this corona disaster?. So this cycle begins to be less stable due to different government spending and responses.from my observation?

The US government have the strongest economy in the world, and the currency USD is one it's pride. Letting the currency fall while another take it place as the world reserve currency is practically impossible. For it will mean a failure in governance. America will never allow that

Euro has done horrible things with its reserve assets, they do not respect capitalism or even fair accounting.   No auditor will sign the books of the EU for quite some time now.   To have a global standard based around a trading cartel that seeks to exclude others for their own benefit is not what I'd call a global reserve currency.
   Yuan is a national currency from a communist military dictatorship that neither respects the individual rights of people to retain value or even their lives intact, its not possible to have a global reserve currency from a regime that might well start the next world war with their ambitions to own the South China sea and all terrorities belonging to other countries.
  The only viable alternative I've heard of recently was via the IMF which is a division of the united nations.  This would be the SDR, already in operation since the 70's but not held by anyone outside of central banks and it includes all the suggested bodies like USA, China and EU but none have control but a proportion of its issue.   This was the original argument at Bretton Woods decades ago that allowing dollar to dominate global reserve would end in so much bias it leads to failure, we are seeing that future now.

I think that despite the mass destruction covid-19 has done to the US, it will still remain the # 1 economy/ the green back remains the worlds reserve currency.  Despite what's transpired, the US stock market has been resilient. I think compared to most economies it's simply so far ahead that losing that title would take more than this.  Keep in mind the sink of the US economy hurts others at the same time.  Still have most countries buying US treasury bonds, and continuing to trust of those.

USD is still beyond strong and is not going anywere. I think ti will be stornger in future personally

COVID-19 has completely destroyed the economy of the United States, if you read news articles on the internet unemployment
in the US is increasing.The US continues to print USD to save the economy, but all these events do not make the USD as a world
reserve currency replaced. Even Bitcoin is very difficult to replace the USD, because world trust in the USD is still quite high.

Looks like fear mongering to me

What ZeroHedge has perfected and made into an art in its own right. In the worse case scenario and assuming that the real mortality rate is close to or below 1% (which is a good assumption), we should also assume that it will ultimately kill around 3 million Americans. This is nowhere near enough to destroy an economy of over 300M people as more people die naturally every year (it's a simple math based on average lifespan), and still more so if we take into account that the virus mostly kills the weak and the old. Put differently, it is a typical case of natural selection which America will come out of stronger than before. Maybe, that was the plan from the outset of the outbreak (if we put our tinfoil hats on)

That's certainly true, mate. COVID-19 has partially destroyed the US economy as we know it. If the outbreak lasts for years, then the USD might lose its status as the reserve currency of the world. It'll be the biggest economic recession Americans have faced in history. I'm hoping that the US sees the light at the end of the tunnel with a COVID-19 vaccine. But if no vaccine is developed, expect this to be an ever-lasting crisis. While the traditional monetary system might fail due to COVID-19, crypto will not. Maybe governments in the mainstream world will use cryptocurrencies such as Bitcoin and Ethereum as a "hedge" against the ever-increasing inflation of traditional Fiat currencies? We're living in a period of uncertainty, so we cannot tell for sure what will happen in the future.

For now, the US is still the strongest economy in the world. There may be a long way to go before the USD collapses in its entirety. No matter if it's the USD, EUR, JPY or CNY as the reserve currency of the world, the economy will remain unchanged. After COVID-19, the recovery of the US' (and the world's) economy will be a slow and steady one. It might take decades before everything turns back to normal. Just my opinion :)