New Reserve Currency of The World

[Pab]

New currency of the world,impossible becoming possible
Very intersting article from cointelegaph
if yes what will happen in USA,capital control,no cash in money atm machines
take aread

http://cointelegraph.com/news/115258/rumor-mill-new-reserve-currency-may-rock-us-dollar-in-october?ref=45

will btc price rock in a case,my opinion yes

[RustyNomad]

Very interesting article. I've read quite a few touching on this same topic but this one manages to put everything together nicely.

There is definitely hard times ahead for the US and at this stage and they run a huge risk of being left behind, not just in so far as the reserve currency debate goes but also in other areas like for example bitcoin. There are already many bitcoin related sites that do not want to deal with US citizens due to the risk of them being accused of bypassing US legislation/regulation by providing services to US citizens. What is happening with bitcoin now has already happened in the banking sector where most European and other banks do not open accounts anymore for US citizens.

Will the  Yuan become a reserve currency? Yes I think it will. If not now with this meeting then most definitely with the next.

Will it give bitcoin a boost? Yes. Just wait for the first sock ripples to come through on the dollar. What happened in Greece, or what is still happening there, is still fresh in everybody's mind and many will think that the US could be heading the same way and this will drive many to start looking for alternatives and bitcoin would be one of those alternatives.

How many will turn to bitcoin? I have no idea but believe that it will be a substantial number.

[gentlemand]

A fine summary but the hyperinflation thing is a tiresome trope. Countless minds across the world will do anything to stave it off. I'll believe it when I see it. I'll be prepared just in case too.

[Habeler876]

Yuan as a reserve currency won't have some impact on bitcoin price, at least not a lasting one. There are those who exploit news like this one
in order to manipulate the price and turn some profit, so i'm not confident that the price won't move, but it will deninitely be of small timeframe.
The day the world realizes that bitcoin should be on top of all currencies is something i want to read about, not about yuan and other fiat

[Q7]

While yuan will emerge as the new reserve currency i doubt it will replace dollar anytime soon. Though it will impact to reduce some demand to dollar but i don't think it will also be anything significant.

[coinableS]

I think cointelegraph has been reading too much zerohedge.
I'm sorry but I'm going to need more than "rumors" and a meme of the British chancellor to take this seriously.

[OROBTC]

New currency of the world,impossible becoming possible
Very intersting article from cointelegaph
if yes what will happen in USA,capital control,no cash in money atm machines
take aread

http://cointelegraph.com/news/115258/rumor-mill-new-reserve-currency-may-rock-us-dollar-in-october?ref=45

will btc price rock in a case,my opinion yes

Well, anything can happen, and given a long enough timeline, it probably will.

Although, IMO, I doubt that the US$ is in serious short-term trouble, even if the Yuan is accepted as a reserve currency at the IMF's upcoming meeting in Peru.  The Yuan needs to be made more convertible before if can be a "serious reserve currency".

The USA is the "cleanest dirty shirt in the closet", at least for now.  Yes, China will eventually rise and become very powerful, but in the short-term China has many, many problems.  Help from the fellow BRICS countries?  No.  China is currently 50% + of the BRICS (economically) and they rest are struggling too.

BTC is a good diversification.  So is gold.

[BobK71]

What timing to write such an article.  Exactly the opposite is happening.  China is cashing in US Treasury reserves because the Chinese people are dumping yuan and getting into "safe" dollars, as much as is allowed by (leaky) capital controls.  And the reason they're doing so is financial asset inflation, bad investments, and asset bubble bursts in China.  If you think these problems are bad in the West, you haven't seen China.

Over the long term, a reserve currency must earn the trust of global investors.  Investors trust the dollar because they are allowed get out of it.  Conversely, being able to get out of dollars (to some degree) forces US authorities to be careful not to issue too many dollars.  Unless the Chinese civilization changes wholesale to embrace (relatively) liberal attitudes towards capital markets, investors won't trust the yuan.  This is not going to change just because the IMF includes the yuan in its SDR basket or the Chinese government sets up its versions of the IMF and World Bank.

Also, if the world transitions from one dominant reserve currency to another (as it went from sterling to the dollar 100 years ago,) it's not really good news for state-free currencies like Bitcoin and gold.  What would benefit state-free money is a long and well-matched competition between states for monetary domination (ie a multi-polar world.)

China can't and never wanted to compete with the dollar.  It tied its fate to the dollar 20 years ago by pegging the yuan mainly to the dollar, accumulating massive dollar reserves, and issuing massive amounts of yuan and yuan debt "backed" by those dollar reserves (mainly for the purpose of keeping the government in power.)

So, the main problem of China is, as expected, its dictatorship.

[Mickeyb]

What timing to write such an article.  Exactly the opposite is happening.  China is cashing in US Treasury reserves because the Chinese people are dumping yuan and getting into "safe" dollars, as much as is allowed by (leaky) capital controls.  And the reason they're doing so is financial asset inflation, bad investments, and asset bubble bursts in China.  If you think these problems are bad in the West, you haven't seen China.

Over the long term, a reserve currency must earn the trust of global investors.  Investors trust the dollar because they are allowed get out of it.  Conversely, being able to get out of dollars (to some degree) forces US authorities to be careful not to issue too many dollars.  Unless the Chinese civilization changes wholesale to embrace (relatively) liberal attitudes towards capital markets, investors won't trust the yuan.  This is not going to change just because the IMF includes the yuan in its SDR basket or the Chinese government sets up its versions of the IMF and World Bank.

Also, if the world transitions from one dominant reserve currency to another (as it went from sterling to the dollar 100 years ago,) it's not really good news for state-free currencies like Bitcoin and gold.  What would benefit state-free money is a long and well-matched competition between states for monetary domination (ie a multi-polar world.)

China can't and never wanted to compete with the dollar.  It tied its fate to the dollar 20 years ago by pegging the yuan mainly to the dollar, accumulating massive dollar reserves, and issuing massive amounts of yuan and yuan debt "backed" by those dollar reserves (mainly for the purpose of keeping the government in power.)

So, the main problem of China is, as expected, its dictatorship.

I like your response! China is literally falling a part at the moment. They have forbidden sale of stocks so that their stock market doesn't crash any further. This is craziness for God's sake! And now I need to trust such a government and turn my money into Yuan. Chinese government is capable of many crazy things and and I wouldn't be able to live with the risks associated. Their government needs much more softening and opening in order for the scenario from the article to take place.

[Hazir]

A fine summary but the hyperinflation thing is a tiresome trope. Countless minds across the world will do anything to stave it off. I'll believe it when I see it. I'll be prepared just in case too.

When currency is collapsing and hyperinflations strikes there is little you can do about it realistically.
News about country economic instability are usually heard long before inflation bubble pop, yet people are usually totally unprepared for this.
So my question is, what will you do really? Hold bitcoins? And exchange it for what? Because fiat will be compromised and direct bitcoin trade is not existent at this point.

[gentlemand]

So my question is, what will you do really? Hold bitcoins? And exchange it for what? Because fiat will be compromised and direct bitcoin trade is not existent at this point.

Go live in a shed in a field. I've done it before, I can do it again. I'll buy the field while my toilet paper money is still worth something.

[lahm-44]

nice articly really it made my day that usa is really on pressure but i think usa stll have chances to overcome this but everybody knows that in or with  bitcoin we are doing maybe about 10% profit each month and that is 10x better profit than any bank out there no matter what country they are

[ITileclooTI]

The value of money is the time and effort of others. Debt is time and effort owed to another. Why should we accept a system whereby private entities create money out ink, paper and electricity, we borrow it, work our busts off to pay it back with interest? I benefit from the investments I've made in the past.

They are in large part what enables my standard of living. The debt payments are fine. I have a problem with people reducing econ into hyperbole. Debt slavery? ...this isn't a serious conversation we're having.

[Possum577]

Will the  Yuan become a reserve currency? Yes I think it will. If not now with this meeting then most definitely with the next.

Will it give bitcoin a boost? Yes.

If the Yuan becomes the reserve currency, why would it give bitcoin a boost? It won't, it'll give the Yuan a boost (because Yuan will have become the reserve currency).

The impact of the Dollar not being the reserve currency will have relatively low impact on the US. It'll impact inflation and the value of US bonds, but that's it. The businesses that exist in the country are largely going to stay functioning - revenue might drop a but due to the inflation (and consumers not being able to afford as much as the once could) but it's not like demand for goods and services is going to disappear completely.

People have been saying "the US is in for tough times" for at least 15 years (if not more). In fact the US had crazy inflation in the late 1970s to 1980s and they pulled out of it just fine!

[bryant.coleman]

If the Yuan becomes the reserve currency, why would it give bitcoin a boost? It won't, it'll give the Yuan a boost (because Yuan will have become the reserve currency).

The best scenario for Bitcoin would be a large number of reserve currencies existing together. In such a scenario, Bitcoin can also become one of the reserve currencies. Right now, the United States Dollar is the reserve currency of the world. This situation is detrimental for the other currencies, including other fiats and Bitcoin.

[BobK71]

The impact of the Dollar not being the reserve currency will have relatively low impact on the US. It'll impact inflation and the value of US bonds, but that's it. The businesses that exist in the country are largely going to stay functioning - revenue might drop a but due to the inflation (and consumers not being able to afford as much as the once could) but it's not like demand for goods and services is going to disappear completely.

People have been saying "the US is in for tough times" for at least 15 years (if not more). In fact the US had crazy inflation in the late 1970s to 1980s and they pulled out of it just fine!

I think unfortunately losing reserve currency status would be pretty bad for the US.  The major US money-maker, the financial industry, would of course lose most of its business.  The major beneficiary of a cheaper dollar, manufacturing, wouldn't yet be ready to take advantage.  Meanwhile, foreigners would rush to sell their dollars and inflation and dollar devaluation would mean immediate loss of value for American savings.  Since people would shun Treasuries, US taxes would go up and public spending cut, or else the other bad effects would be even worse.  When Britain lost its status, even with US help (help that the US can't count on from the next monetary power,) it still had to live with decades of stagflation.

Stagflation also afflicted the US in the late 70s as it was looking like it might lose this status.  But the pain stopped when it turned out to keep the status (from a combination of factors, including 20% interest rate, a still-low national debt, and the Cold War still going on meaning that allies could still be talked into helping the dollar in exchange for US military engagement.)

[bimasena25]

hopefully can same as stellar, reliable and have high rates to exchange other 'money'

[Enfield]

The U.S. owes almost US$3 trillion to just Japan and China alone as it prints about US$696 million per day. According to the International Monetary Fund (IMF) or the world’s loan shark, China has even passed the U.S. as the world’s largest economy.

What I don't understand is why does the US own Japan and china so much? Why do they even need to borrow so much money when they can just print their own not to mention why would they want to be in so much debt that they can't ever really repay?

[MF Doom]

evenyone seems to think that if capital controls are imposed, btc will skyrocket.  but what happened in greece?  nothing like that.  in fact, if people cant get fiat, how can they get btc?  does anyone think that people are going to go to the bank, take their daily withdrawal limit, and then go through the process (and it is a process, no matter how you buy btc whether in person or online) to get btc?  When things like FOOD and household supplies are really what they need??

In any scenario, I dont think anyone will be going out of their way to buy btc.

[killerjoegreece]

    
New Reserve Currency of The World  is going to be bitcoin. just give it some time.