Morgan Stanley suggests that Bitcoin and CBDCs hold the power to diminish the dominance of the US dollar globally.
According to experts at Morgan Stanley, Bitcoin (BTC) and central bank digital currencies (CBDCs) have the potential to challenge the dominance of the US dollar. In a recent report, analysts from the investment bank suggest that BTC could surpass the US dollar as a global currency, which currently accounts for around 60% of international foreign exchange reserves.
Andrew Peel, the head of digital assets at Morgan Stanley, emphasizes that this shift is being rapidly accelerated by the Securities and Exchange Commission’s approval of several spot Bitcoin exchange-traded funds (ETFs) in the US. These ETFs have seen weekly inflows exceeding $1.18 billion into new products. Peel also notes that BTC has experienced consistent growth over the past 15 years and currently has a user base of 106 million people worldwide. Additionally, Bitcoin ATMs can now be found in over 80 countries.
It is worth considering that CBDCs from other countries could also impact the dominance of the US dollar. These digital currencies would potentially enable fast cross-border payments without the need for a common currency like the US dollar.
As of now, Bitcoin holds nearly 49% of the total cryptocurrency market, according to Block Research. In November 2023, Bitcoin’s market share reached over 51.4%, which is one of the highest figures in recent years. This increasing dominance of Bitcoin highlights its significance in the cryptocurrency market and its influence on alternative coins and overall market sentiment.
To stay updated, you can follow us on Google News.
