The OMFIF Podcast Will the dollar remain king?
Apr 22, 2025
Paul Blustein, a notable author and former senior correspondent, dives into the throne of the U.S. dollar in global finance. He argues why the dollar remains irreplaceable despite rising contenders like the euro and renminbi. The discussion also explores the role of cryptocurrencies and potential impacts from U.S. sanctions. Blustein warns of challenges, including American legislative dysfunction, that could disrupt the dollar's dominance, while highlighting its unique dual role as a currency and political tool.
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Dollar Dominance is Nearly Impregnable
- The US dollar's dominance is nearly impregnable barring catastrophic US government missteps.
- Many past predictions of the dollar's decline have proven wrong despite ongoing concerns.
Euro and RMB Face Big Hurdles
- The euro and RMB face big hurdles like lack of free capital movement and weak rule of law.
- If those were overcome, it would benefit the world and the US by challenging dollar dominance.
Crypto Risks and Stablecoin Concerns
- Cryptocurrencies mainly serve illicit finance and sanctions evasion, not mass exchange.
- Stablecoins could threaten other countries' monetary sovereignty by enabling dollarization.