Morgan Stanley Crypto Expert Outlines How Bitcoin, CBDCs Threaten US Dollar Supremacy – Morgan Stanley (NYSE:MS)
January 16, 2024 12:17 PM | 2 min read
Options 101: The Beginner’s Guide
Want to become an options master? In his free report, options expert Nic Chahine will give you access to the four bulletproof tips for beginners, the secret to scoring 411% gains with options, and his time-tested “plan” for success. Grab your free copy of Options 101: The Beginner’s Guide ASAP.
Morgan Stanley (NYSE:MS) issued a warning about the potential decline in the global dominance of the U.S. dollar.
The investment bank attributed this decline to the rising influence of digital assets like Bitcoin (CRYPTO: BTC) and various central bank digital currencies (CBDCs).
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you’ll also get Benzinga’s ultimate morning update AND a free $30 gift card and more!
Andrew Peel, Morgan Stanley’s head of digital assets, highlighted in an investment note dated Jan. 12, that the U.S. dollar — currently accounting for about 60% of global foreign exchange reserves — faces a challenge due to a significant shift in how digital assets are perceived and utilized globally.
Peel emphasized that this change is being propelled forward by the recent approval of several spot Bitcoin exchange-traded funds in the U.S. by the Securities and Exchange Commission (SEC).
He pointed out that these new products have already seen substantial weekly inflows, exceeding $1.18 billion.
Peel also referenced Bitcoin’s impressive global adoption over the last 15 years as a sign of its ongoing growth.
He noted that around 106 million people worldwide now own Bitcoin and the presence of Bitcoin ATMs in over 80 countries further evidences its expanding reach.
Before You Do Another Thing, Invest In Your Future With Options
Want to become an options master? In his special 90% discount, Nic Chahine will give you full access to his top options plays, including strategies he’s used to bag two-digit winners. Learn Nic’s time-tested strategies ASAP. Buy here for only $0.99.
Read Also: Bitcoin ETFs Roar Onto Wall Street On Day 1, But Questions Linger About New Money
De-Dollarization Through CBDCs: The rise of CBDCs in various countries poses another potential threat to the dollar’s supremacy, according to Peel.
He explained that CBDCs could facilitate rapid cross-border payments without relying on a common currency like the dollar.
Peel said, “(CBDCs) hold the potential to establish a unified standard for cross-border payments, which could diminish the reliance on traditional intermediaries like SWIFT and the use of dominant currencies such as the dollar.”
Peel further discussed the innovative possibilities offered by CBDCs, such as the implementation of smart contracts to automate payments, bringing the idea of programmable money closer to reality.
Stablecoins — Crypto’s ‘Killer App?’: While acknowledging the impact of Bitcoin and CBDCs on the U.S. dollar’s dominance, Peel also pointed out the potential benefits of stablecoins in global finance.
He described these largely fiat-pegged digital currencies as the “killer app” of the crypto world.
Peel elaborated, “With their increasing importance, dollar-backed stablecoins are set to have a profound impact on the financial sector, potentially reshaping how money is moved across borders.”
Read Next: Bitcoin ETFs Ignite A Tsunami, Threatening To Engulf Traditional Crypto Stocks
Options 101: The Beginner’s Guide
Want to become an options master? In his free report, options expert Nic Chahine will give you access to the four bulletproof tips for beginners, the secret to scoring 411% gains with options, and his time-tested “plan” for success. Grab your free copy of Options 101: The Beginner’s Guide ASAP.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
