CEO says cryptos could replace U.S. dollar as reserve currency

When the CEO of a group like Lazard – Ken Jacobs’ firm manages more than $250 billion – makes a bullish comment like this about cryptocurrencies, you should pay attention.

And although Jacobs maintains the U.S. dollar’s status as the reserve currency is indisputable for the time being, that may not be the case in the future…

“To the extent that we have unilateral foreign policy and unilateral trade policy, we’re sort of tempting the world to find an alternative.”

As Bloomberg reports, one factor that could influence the dollar’s reserve currency status is U.S. isolationism, specifically in regard to foreign policy and trade…

The U.S. dollar has been the international currency of choice for more than half a century because of its stability in global markets. That keeps a lid on borrowing costs in America and helps fund the U.S. budget deficit as trading partners place their dollars in Treasuries. Threats to that status are still far off, Jacobs said, because the main currencies in Europe and China are unlikely replacements.

If traditional currencies from other global powers aren’t viable options, what then could serve as a replacement? Jacobs has his eye on crypto technology…

“There’s enough technology out in the world today with cryptocurrency and changes going on that you can imagine, if you let your mind wander a little bit, that something becomes an alternative in the future.”

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