Amid changing global geopolitical dynamics and mounting US debt, governments throughout the world have been considering alternative forms of money to the USD to settle trades.
According to the most recent news, the Latin American countries of Brazil and Argentina have stated that they are developing a unified currency. South America’s two largest economies will discuss plans at the Buenos Aires Summit this week.
According to the specifics, the new currency will be used to increase trade and reliance between the two countries while decreasing reliance on the US dollar. Argentina’s Economy Minister Sergio Massa told the Financial Times:
“There will be . . . a decision to start studying the parameters needed for a common currency, which includes everything from fiscal issues to the size of the economy and the role of central banks. It would be a study of mechanisms for trade integration. I don’t want to create any false expectations . . . it’s the first step on a long road which Latin America must travel.”
Could Bitcoin Play a Role in This?
According to current ideas, the new currency dubbed “sure” (South) will be useful as a bilateral initiative. Later, the two governments intend to broaden this bilateral project by including additional countries.
However, undermining the USD’s hegemony will be an uphill battle for everyone in the long run. Building trust in fiat currencies will be difficult because they are controlled by central banks.
Coinbase CEO Brian Armstrong indicated that switching to Bitcoin would be the best choice. Bitcoin’s decentralized ledger and supply cap make it a valuable store of wealth, reducing reliance on any single central bank. Armstrong responded by writing:
Wonder if they would consider moving to Bitcoin – that would probably be the right long term bet”.
Bitcoin is regaining popularity as users throughout the world want to break free from fiat currency in the face of mounting global debt and diminishing economic output. This month, Bitcoin experienced a good price increase, with about 33% gains since the beginning of 2023. The Fed, on the other hand, is likely to keep raising interest rates as long as inflation remains high.
For more articles visit : Cryptotechnews24