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CBDCs May Undermine USD Hegemony

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The past week saw Goldman Sachs and JPMorgan, two traditional finance investment banks, discuss cryptos, their identities as an asset class, and CBDC’s potential threat to the U.S. dollar. Dr. Marc J.J. Fleury, CEO of fintech firm Two Prime, discusses the following topics this week, with full commentary below.

  • GS: Crypto is not a real asset —In a recent investor call, Goldman Sachs spoke about how bitcoin and other coins were unsuitable for investment, with BTC’s run likened to that of the Tulip mania back in the 1600s. When it seems so obvious that crypto is here to stay, what do they still not understand?
  • JPM: CBDCs may undermine the hegemony of the USD — In a report last week, JPMorgan asserted that “there is no country with more to lose from the disruptive potential of digital currency than the United States.” How realistic is it for a digital currency like bitcoin to become the world’s new reserve currency? What conditions should be met for this to occur? How will the global monetary system look if the scenario is impossible?
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