Experts at investment bank Morgan Stanley believe that Bitcoin (BTC) and CBDCs can challenge the dollar.
In a new report from Morgan Stanley, analysts point out that BTC could lead the US dollar as a global currency, accounting for about 60% of international foreign exchange reserves.
Andrew Peel, head of digital assets at Morgan Stanley, notes that this shift is being significantly accelerated by the SEC approving a list of spot Bitcoin ETFs in the United States, with weekly inflows into new products exceeding 1.18 billion U.S. dollar. Additionally, BTC has been growing steadily over the past 15 years and currently 106 million people worldwide own the cryptocurrency. In addition, there are now Bitcoin ATMs in over 80 countries.
However, CBDCs from other countries could also undermine the dominance of the US dollar and enable fast cross-border payments without the need for a common currency like the US dollar.
“[CBDCs] have the potential to establish a uniform standard for cross-border payments, which could reduce reliance on traditional intermediaries such as SWIFT and the use of dominant currencies such as the dollar.”
Morgan Stanley's report
According to Block Research, Bitcoin’s face value is currently close to 49%. As of November 2023, Bitcoin's share of the cryptocurrency market was more than 51.4%, one of the highest levels in recent years. Bitcoin’s growing dominance highlights its role in the cryptocurrency market and its influence on altcoins and overall sentiment.
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