FEDNOW is paper money going digital- the first step in replacing it imo. It will be how the fed directly supports weak banks at first until everyone has to be on board to be competitive.
If a local currency has to be converted to $$$ for transactions they already have the local currency they need
Do you think countries will continue to sacrifice their standard of living to support our bloated one?
I mean if they are not forced to with threats of Iraq, Libya and Egypt just to name a few..if they don't
You know like it is today..
Eagler
I'm not sure you are understanding my point.
Who ever is the reserve currency has to have enough in circulation for their own needs and to cover all other international transactions simultaneously everywhere all over the world.
Just because Italy might have enough Lira to buy a million barrels of oil doesn't mean there are enough Lira in circulation for all countries all over the world to transact their trade in Lira simultaneously. They would have to massively expand their money supply to allow that volume with predictable results.
What country has that volume of currency in distribution to cover all trades and has less inflation than the US?
Euro is the only thing close, but they have too many problems. The EU only barely hangs together with duct tape. Their inflation is worse than ours. They are not energy independent. They have little consistent monetary policy between members. It is not going to be the Reserve.
Everyone else is significantly worse than that.
So again, what country has that volume of currency in distribution to cover all trades and has less inflation than the US?
https://www.schwab.com/learn/story/will-us-dollar-lose-its-reserve-status