Ep.468: What History's Greatest Currencies Tell Us About the Future of the Dollar | Barry Eichengreen

Bullish:

• $STABLES - Stablecoins could extend the dollar's network effects and provide new payment rails that benefit the dollar, with 99% of stablecoins currently linked to USD.

  • “I do think that they are wedded to the idea that stablecoins could provide a new set of payment rails that will work to the advantage of the dollar because 99% of stablecoin circulation out there at the moment are coins linked to the US dollar.”

    Barry·1:38:37

Bearish:

• $USD - The dollar faces serious threats from domestic political instability, questions about Fed independence, and weakening US alliances, with the main threat coming from within the US itself.

  • “I think the main threat to the dollar's global status comes from The United States itself and not from the growth of Chinese competition or digital competition or whatever. The dollar's future will be made or broken in The US.”

    Barry·1:34:25

  • “So whenever there are proof social posts or other threats to the independence of the Fed, people begin to worry about the security of their dollar holdings.”

    Barry·1:32:47

  • “Whenever there are questions about the integrity of elections in The United States, foreign holders and users of dollars begin to worry about hedging those political risks, which can lead to unpredictable changes in policy, including unpredictable changes in how foreign financial claims on The United States might be treated.”

    Barry·1:33:01