US Default: Cryptos To The Rescue?
The US dollar might lose its dominance in international trade. Americans have been debating about it. Some people are more aware of the risk than others. If it happens, the entire global economic system would collapse.
Default Risk: Key Threat To The US Dollar
Recently, some people didn't believe that the US dollar would lose its power. Now, more people think it's possible. Even Hillary Clinton thinks so.
She didn't miss the chance to speak on this national interest question in the US. According to her, there is a risk. The status of the dollar as a reserve currency could be at risk.
The fault lies within the United States, not outside as some may have thought recently. The American currency may lose its impact in international transactions due to the country's payment default.
The former Democratic presidential candidate of 2016 has said that if Congress doesn't stop flirting with defaulting on debt, calls to replace the US dollar as the world's reserve currency will increase.
Default Risk: A Threat To The Global Financial System?
Hillary Clinton's analysis goes beyond national issues. The situation of the US currency could become a global problem, according to her, threatening financial stability worldwide.
If the US defaults on its debt, it could have a global financial impact. This could cause individuals, companies, and governments worldwide to lose confidence. It could ultimately lead to a financial crisis.
Right now, other countries trust that America will pay its debts, enforce the law, and maintain stability. Hillary Clinton thinks it's clear that if the US defaults on its debts, other countries will protect themselves.
The ex-Secretary of State warns that the debate on the debt ceiling is not about authorizing new expenses. The Congress needs to pay their already contracted debts. Refusing to pay will have worldwide consequences, like not paying a mortgage. The BRICS countries have understood and are preparing for it.
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I graduated from Sciences Po Toulouse and received a blockchain consulting certification from Alyra. I joined Cointribune in 2019 because I believe the blockchain has the potential to transform many sectors of the economy. My goal is to educate the public and help them understand the opportunities the blockchain offers. I analyze current news, trends in the market, the latest technology innovations, and economic and societal issues related to this revolution.
The views and opinions expressed in this article are only from the author and should not be taken as investment advice. Do your own research before making any investment decisions.
