{"id":20397,"date":"2023-04-29T22:56:17","date_gmt":"2023-04-29T22:56:17","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/economist-predicts-shift-to-tripolar-reserve-currency-world-yuan-euro-to-disrupt-us-dollars-dominance-economics-bitcoin-news\/"},"modified":"2023-04-29T22:56:17","modified_gmt":"2023-04-29T22:56:17","slug":"economist-predicts-shift-to-tripolar-reserve-currency-world-yuan-euro-to-disrupt-us-dollars-dominance-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/economist-predicts-shift-to-tripolar-reserve-currency-world-yuan-euro-to-disrupt-us-dollars-dominance-economics-bitcoin-news\/","title":{"rendered":"Economist Predicts Shift to Tripolar Reserve Currency World \u2014 Yuan, Euro to Disrupt US Dollar’s Dominance \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Economist Stephen Jen, a former Morgan Stanley managing director, expects a shift \u201cfrom a unipolar reserve currency world to a multipolar world,\u201d with the Chinese yuan, the euro, and the U.S. dollar forming a \u201ctripolar\u201d reserve currency configuration.<\/strong><\/p>\n

\u2018A Multipolar World\u2019<\/h2>\n

Economist Stephen Jen, the CEO of asset management firm Eurizon SLJ, expects multiple currencies will chip away at the U.S. dollar\u2019s dominance. Jen was formerly a managing director at Morgan Stanley in London and a senior economist at the International Monetary Fund (IMF).<\/p>\n

After stating that the U.S. dollar is losing its world\u2019s reserve currency status at \u201can alarming pace<\/a>,\u201d the former Morgan Stanley director told the Insider publication that the de-dollarization trend is likely to continue. However, he noted that it will \u201cprobably not to a point where a non-dollar currency commands a bigger market share than the dollar.\u201d Jen described:<\/p>\n

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More likely, we will evolve from a unipolar reserve currency world to a multipolar world.<\/p>\n<\/blockquote>\n

The economist pointed out that all other currencies have flaws as international currencies and potential challengers to the dominance of the U.S. dollar. Nonetheless, he shared with the news outlet:<\/p>\n

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But if I have to guess, it should be the [euro] and the [yuan] having roughly equal presence. Such a \u2018tripolar\u2019 reserve currency configuration would also make sense and be more aligned with the economic heft of the three blocs.<\/p>\n<\/blockquote>\n

The Eurizon SLJ chief emphasized that for the Chinese yuan to gain ground as a reserve currency, China\u2019s financial sector would need to improve in quality, noting that foreign investors are still cautious about investing in Chinese equities and bonds. \u201cWithout foreign demand for Chinese assets, Chinese savers and households cannot be allowed to invest overseas, and thus the capital controls would need to remain in place,\u201d he stressed, adding:<\/p>\n

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With capital controls, it would be difficult for the [yuan] to become a viable international currency.<\/p>\n<\/blockquote>\n

A growing number of people have voiced concerns regarding the U.S. dollar losing its global reserve currency status<\/a>. Economist Nouriel Roubini (aka Dr. Doom) expects the world to shift to a bipolar<\/a> global reserve currency system with the Chinese yuan as an alternative to the USD. The president of the European Central Bank (ECB), Christine Lagarde<\/a>, said earlier this week that the USD\u2019s reserve currency status should no longer be taken for granted.<\/p>\n

Do you agree with economist Stephen Jen? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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