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Americans Jittery Over Dollar Losing Global Supremacy To Cryptocurrency

Following the global acceptability of cryptocurrency as means for payment for goods and services, the United States is expressing some high level of fear that the development would consequently destabilize its grips over nations and undermine the dollar as the world’s reserve currency.

Speaking in this regard, former U.S. presidential candidate Hillary Clinton has urged nation-states to “start paying greater attention to the rise of cryptocurrency.” She warned that crypto could undermine the role of the dollar as the world’s reserve currency and could destabilize nations.

Hillary Clinton talked about cryptocurrency Friday during a panel discussion at the Bloomberg New Economy Forum in Singapore.

Bitcoin.com reports that while addressing a range of new challenges, including disinformation and artificial intelligence (AI), Clinton said, “One more area that I hope nation-states start paying greater attention to is the rise of cryptocurrency.”

The former Secretary of State and former Democratic presidential candidate said: ”What looks like a very interesting and somewhat exotic effort to literally mine new coins in order to trade with them has the potential for undermining currencies, for undermining the role of the dollar as the reserve currency, for destabilizing nations, perhaps starting with small ones but going much larger.

Clinton is not the only one seeing that the rise in popularity of cryptocurrency could hurt the U.S. dollar. Former President Donald Trump has said on several occasions that he does not like cryptocurrency because it competes against the U.S. dollar. “I don’t want to have other currencies coming out and hurting or demeaning the dollar in any way,” he stressed.

In July last year, global investment bank Goldman Sachs warned that the “Real concerns around the longevity of the U.S. dollar as a reserve currency have started to emerge.”

Legendary fund manager Stanley Druckenmiller said in May: “I’m worried now for the first time that within 15 years we lose reserve currency status and of course all the unbelievable benefits that have accrued with it.” But is there any global solution in sight to the popularity of cryptocurrency as the initiative is built on blockchain technology powered by the internet?

However, some people believe that crypto will not replace the dollar as the world’s reserve currency. Mohamed El-Erian, chief economic advisor at financial services company Allianz, said this week that crypto “will always exist in the ecosystem but it’s not going to be a global currency … It’s not going to replace the dollar.”

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