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Senigallia 30/03/2023 – According to Monica Crowley, former US Undersecretary for Foreign Affairs, the consequences for the American and world economy would be “catastrophic”.
Monica Crowley, a former undersecretary at the US Foreign Office, explained what could happen if emerging economies opted, for example, for the Chinese yuan instead of the US dollar as the global reserve currency and the greenback lost its current dominant currency:
“It is no exaggeration to call the abandonment of the dollar as a global reserve currency ‘catastrophic’.” The greenback has always been considered a safe haven since the end of the Second World War. Initially it was backed by gold reserves, then in 1971 President Nixon decided to end the era of the gold standard by announcing that the dollar would no longer be convertible and redeemable in gold. This is in order to reduce the country’s growing deficit.
Since then, the dollar has not been supported by any other commodities or assets, but only by US “economic strength and power”. A very important factor is that oil has always been bought, sold and denominated in dollars but, in light of the changed global geopolitical situation, this state of affairs could also change. Such a scenario, according to Crowley: “It would mean the end of the dollar.”
The role of the dollar as a world reserve currency is defined as a “privilege” but America has abused, according to Crowley, this privilege as evidenced by its monetary and fiscal policy, especially that of the last two years, which ended up devaluing the dollar.
According to Crowley: “Also there is this perfect storm of Biden’s weakness, the war he is waging against domestic energy production, the war in Ukraine… Because of all these factors, America’s enemies, led by China , are forming a new economic bloc.”
Saudi Arabia also seems to be opening up the possibility of marketing oil in currencies other than the dollar. “If this were to happen – Crowley warns – it would be a complete implosion of the global economic system and certainly of the American one. In such a scenario, inflation would skyrocket to figures comparable to those of the Weimar Republic. If you think this inflation is high, wait. But, above all, we would lose economic supremacy and the role of superpower”.
The role of cryptocurrencies
The cryptocurrency market is worth around a trillion dollars, a large figure in itself but still small compared to the global economy. And yet, even cryptocurrencies can represent an alternative not only to the dollar, but to fiat currencies in general.
Let’s think about the recent Africa Bitcoin Conference attended by Jack Dorsey, CEO of Block and former CEO of Twitter. If for the most developed countries Bitcoin and other cryptocurrencies can represent a pleasant innovation in investments, for other countries these technologies can represent a substantial improvement in the standard of living.
There are billions of people who don’t have access to banking services because they simply don’t have a bank account or there are no banks nearby. In these countries also the local currency is often weak and eroded by inflation and remittances from abroad are a strong item of the GDP. In this context, Bitcoin and other cryptocurrencies bring financial power to those without it.
Moving money to Africa is not easy at all, not to mention that 80% of international payments originating from Africa are processed outside this continent, resulting in higher fees and transaction processing times. Money transfer companies like Western Union and MoneyGram also charge very high fees.
2022 was not a good year for cryptocurrencies as they saw two-thirds of their market capitalization lose. 2023, on the other hand, got off to a good start: the good performance of Bitcoin and the best altcoins and the performance of some cryptocurrencies in the pre-sale phase, three in particular.
Love Hate Inu
Love Hate Inu raised two million dollars in three weeks of pre-sales, a real record. The project fits into the online survey market which is now worth three billion dollars and will grow by double digits every year, at least until 2027.
Love Hate Inu invents the vote to earn: users can vote on its platform by expressing a favorable or unfavorable opinion on a public figure or a topical issue and for this they are rewarded with the native LHINU token, with NFT discounts or with metaverse assets.
The use of the blockchain in this sector ensures the inalterability of the results and the anonymity of the voters. Only those who own and stake the LHINU token can vote, thus avoiding the intervention of spammers and bots.
Fight Out is a cryptofitness app similar to StepN. It works in the sector of move to earnrewarding users for their physical activity, not just for jogging but for a much wider range of exercises, all of which are performed in the gym.
Fight Out is also a physical network of gyms where users of the community can meet. It is also a metaverse with NFT avatars tied to users. Only if the real user progresses in his personalized training program, the avatar will be able to get stronger.
The FGHT token has raised around 6 million in pre-sales. The presale ends on March 31, while the first listing on the exchanges will take place on April 5.
Today is the last day of the presale C+Charge (CCHG), an active project in the field of electric vehicle charging. C+Charge is a network of charging stations and a mobile app.