Economist Claims US Treasury is Greatest Enemy of Dollar as Reserve Currency – Economics Bitcoin News


Jim Rickards, a well-known economist and author of “Currency Wars,” believes that the U.S. Treasury poses the biggest challenge to the U.S. dollar’s status as a reserve currency. He explained that there are multiple parties seeking to replace the USD for payment purposes, but this pales in comparison to the risk of a challenger to the dollar’s role as a reserve currency.

Jim Rickards on U.S. Dollar Reserve Currency Threat

Economist Jim Rickards recently warned that the U.S. Treasury’s weaponization of the dollar poses the greatest risk to the U.S. dollar’s status as a reserve currency. Speaking to “Fox & Friends Weekend” on Saturday, he noted:

The greatest enemy of the dollar as a reserve currency is not all those other countries. It’s the U.S. Treasury.

Rickards explained the difference between a payment and reserve currency. He pointed out that while many countries are moving away from using the USD for payments, the “bigger threat” to the U.S. dollar is its potential replacement as a reserve currency. He elaborated:

The U.S. Treasury has weaponized the dollar, frozen the reserves of the Central Bank of Russia and other countries looking around saying, ‘Hey, what if they don’t like what I did? What if they don’t like one of my policies, are they’re going to freeze my reserves?’

According to Rickards, the only real alternative to the dollar as a reserve currency is gold. Meanwhile, he said that the increasing number of countries seeking alternatives to the dollar as a payment currency is “a big deal.” He stated:

That’s a big deal. The dollar is being attacked from all sides. People are looking for substitute payment currencies.

A number of nations, including China, Russia, India, Malaysia, and Saudi Arabia, have taken steps to cut their reliance on the U.S. dollar. Recently, China and Brazil struck a deal to replace the USD with their own currencies in trade transactions. In addition, ASEAN countries have agreed to reduce their reliance on the U.S. dollar for trade settlements, and the BRICS nations are reportedly working on creating a new currency.

What do you think of Jim Rickards’ comments? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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