The rise of cryptocurrencies has created a unique opportunity for market forces to spearhead a shift toward a truly neutral reserve asset. With the leadership of the US – the issuer of the main international reserve currency – more unpredictable than ever, it is an opportunity that should not be missed.
HONG KONG – As the risk of a US-China trade war mounts, creating a geopolitically neutral and fair monetary system has become increasingly urgent. The shift from a unipolar to a multipolar world order has not been particularly orderly. Instead, it has produced a kind of monetary non-system that depends on a debt-driven, dollar-based model that is too pro-cyclical, fragile, and potentially biased to support the management of trade conflict.
HONG KONG – As the risk of a US-China trade war mounts, creating a geopolitically neutral and fair monetary system has become increasingly urgent. The shift from a unipolar to a multipolar world order has not been particularly orderly. Instead, it has produced a kind of monetary non-system that depends on a debt-driven, dollar-based model that is too pro-cyclical, fragile, and potentially biased to support the management of trade conflict.