Leading global investment bank Morgan Stanley has published a new report predicting the future of the US dollar. This prediction comes at a time when the BRICS group is looking to eliminate the US dollar as the world's reserve currency. Morgan Stanley spoke about the threat posed by BRICS, central bank digital currencies, Bitcoin, and stablecoins that aim to uproot the dominance of the US dollar. Morgan Stanley said that few contenders, except for the BRICS, are vying to sever ties with the US dollar and make their currency supreme.
Read also: Saudi Arabia will withdraw from BRICS membership?
Read here to find out how many sectors in the United States would be affected if the BRICS stopped using the dollar in trade. This move will hamper the US dollar's prospects leading to hyperinflation and job cuts at home.
BRICS: Morgan Stanley predicts the future of the US dollar amid global scrutiny
The report issued by Morgan Stanley confirmed that the US dollar 'Increasingly under scrutiny' around the world. From the BRICS group to the Association of Southeast Asian Nations (ASEAN), developing countries are looking for alternatives to the US dollar financial system.
Read also: BRICS: The US dollar ranks last in the list of top ten currencies
“A clear shift towards reduced reliance on the dollar is evident, which is simultaneously driving increased interest in digital currencies such as Bitcoin, stablecoins and central bank digital currencies.” Morgan Stanley analyst Andrew Bell, the bank's CEO and head of digital asset markets, wrote in the report titled “Digital dollarization?”
Morgan Stanley explained that both China and the European Union offer their currencies as alternatives to the US dollar.
“China is working to develop the yuan in international trade. The European Union is actively promoting the role of the euro in international trade, with the aim of providing a practical alternative to the dollar.” he wrote.
Read also: US stock market: Warren Buffett buys $82 million worth of these stocks
“It is noteworthy that the recent growth in interest in digital assets such as Bitcoin, the growth in stablecoin volumes, and the promise of central bank digital currencies (CBDCs), has the potential to significantly change the currency landscape. The dominance of the US dollar as the cornerstone of the international financial system is now being recognized.” Reconsidered in the face of emerging geopolitical shifts and the growing dual deficit in the United States. Sum it up.
In conclusion, Morgan Stanley expects that the US dollar will have to fight the BRICS countries, central bank digital currencies, Bitcoin, and stablecoins to remain relevant. This comes in the wake of the BRICS leading the movement to de-dollarize the US dollar.
Read also: 3 countries agree to launch the BRICS currency to challenge the US dollar
