U.S. Dollar Reserves Hit A 6-Year Low: International Monetary Fund
This is why Bitcoin will Benefit
Government liabilities, local currencies, and international investments all garnered support from global reserve currencies, which are held by central banks. The U.S. dollar (USD) has been the leading global reserve currency for some time, but things may start to change. The International Monetary Fund (IMF) has reported currency ratios for Q2, and it’s not looking good for the U.S. dollar. This is because the USD had hit 6 years low with a 61.63% share allocation in total reserves.
Reported last year, Russia and China have dumped U.S. Treasury bonds in record amounts and buying gold, which could have played a large roll in the results for Q2 2019’s reserves report.
According to Bloomberg, Valenzuela has been holding a large amount of bitcoin and considering its use as a reserve currency. This seems very possible because, in the first half of 2019, Venezuela has lost an estimated $1 billion in gold reserves. This is a huge step forward for internet gold. Being officially recognized by a governing body adds legitimacy and if used as a reserve currency, it could mean even more for the digital bullion.
If Venezuela does end up choosing bitcoin as a reserve, I could see Russia and possibly China following suit. This is because all three countries hold close relationships, have sanctions implemented on them, and can benefit from the store of value use case bitcoin provides. Bitcoin is sure in for a wild 2020 with the possibility of printing new all-time highs.
Published at Tue, 01 Oct 2019 04:31:42 +0000
{flickr|100|campaign}