China’s central bank governor set out his vision for a “multi-polar” currency order, part of Beijing’s long-running efforts to dethrone the dollar.
Washington derives huge benefit from the dollar’s role as the world’s reserve currency, allowing it to borrow more cheaply and impose economic sanctions on countries it wants to punish. Yet with mounting threats to the dollar’s dominance, others see opportunity, from Beijing, which wants to increase global use of its yuan, to Brussels, which has touted a “global euro.”
The US Treasury secretary is hopeful, however, that Washington’s embrace of crypto and stablecoins — it passed new legislation this week — could “reinforce dollar supremacy” by making the US a hub for digital assets and its currency a reference point.
