Capital and Foreign Exchange

Experts seem to agree that a major decline of the US dollar is not likely immediate, if ever possible. What do you think? How soon would it happen, or if it would ever happen?

Nothing lasts forever. It is not only possible but probable that there will be a significant decline in the US Dollar at some point in the future. I agree that it is likely not immediate. However, other nations are attempting to chip away at the US Dollars dominance today. India and Iran have their own foreign currency exchange system with each other that does not rely on the USD. More countries will likely create alternative foreign exchanges. Additionally, 60% of the world’s central banks are experimenting with digital currency. When the global economy adopts a digital wallet system, it puts the USD at great risk. FinTech companies in China popularized the digital wallet, and now international governments globally are investing resources into developing their own.

Why do central banks want to issue digital currency? What’s the impact of a crypto currency and digital currency by central banks on the US dollars? Should the US launch its own digital currency soon? Are you ready for a digital dollar?

Some of the benefits of digital currency include payment system stability, financial inclusion, and more manageable cross-border payments. Additionally, for countries that want to move away from the USD being the standard currency, a digital wallet helps reduce dependency. Along with cryptocurrency, these pose a risk to the US dollar. The US is looking into launching its own digital currency but is careful not to undermine its financial markets while doing so. This is a good idea, and I welcome the digital dollar. However, I do not fully understand the risk I will take with this new system should the digital dollar be hacked or if the internet goes down. Before fully embracing the technology advancement, I want to understand the safety risks involved.