The Argentine Deputy Finance Minister made a sensational statement. Felix Martin Soto said that very soon cryptocurrency will become the main reserve asset. And this will lead to the inevitable collapse of the dollar.
Attention is drawn to exactly where these words were spoken. Felix Martin Soto spoke about the collapse of the dollar at a meeting with the head of the Chinese financial giant Huobi Group. During a meeting in Beijing, he stated that the US dollar is already losing its position.
Huobi Group is the largest platform in China for the exchange of digital financial assets. Daily turnover exceeds $ 1 billion. After the introduction of strict restrictions on cryptocurrency trading, Huobi moved to Singapore. It is a public company, its shares are traded on the Hong Kong Stock Exchange.
Talk about what exactly cryptocurrency will become a reserve asset, go a long time. However, they are rarely supported by officials of such a high level. This time the words of Felix Soto acquire a special meaning. The fact is that due to high inflation in Argentina, a significant part of its inhabitants prefers to keep their savings in dollars.
The second important factor - the words about the collapse of the dollar was uttered precisely in Beijing. For a whole year, there has been a customs war between the US and the PRC, from which both sides are suffering. Moreover, in this struggle, it is the Chinese authorities who make significant concessions.
The standoff between the United States and China began after the appearance of oil futures on the Shanghai Stock Exchange. Until March 2018, only American marketplaces provided services for the purchase and sale of oil contracts for the supply of Brent and WTI oil.
Although both countries rather tightly regulate the cryptocurrency market, the Chinese are more loyal to this asset. Back in 2017, the Institute for the study of digital currencies at the People’s Bank of China proposed to introduce the national cryptocurrency of the PRC as soon as possible. Although it was decided not to be hasty on this issue, work on this project is underway.
Americans in every way counteract the emergence of state tokens. Moreover, the authorities seek to limit the development of digital financial assets. In this fight, a particularly important place belongs to the SEC. That it inhibits the market and does it in a rather tricky form. The Office does not impose strict restrictions. It simply punishes those who act without permission. And in every way delays the adoption of positive decisions.
The head of Pillar, David Siegel, publicly accused the SEC of clearly opposing the development of cryptocurrency. Because of the position of the regulator, many companies are forced to move to the EU, the UK and Asian countries. Siegel is sure that ultimately this will lead to the technological lag of the United States.
It is possible that Americans deliberately try to slow down the development of the cryptocurrency market. With a debt of 21 trillion dollars, any competition can lead to collapse on financial sites. The paradox is that not the United States can become the main victim of the collapse of the dollar. Only Chinese authorities have invested up to $ 3 trillion in US debt securities. If the pyramid collapses, they will permanently lose these funds.
Therefore, even the Chinese are interested in the fact that the cryptocurrency has not yet become the main reserve asset. But it is very difficult to keep a private investor. And if he sees a real alternative to the dollar, then he is unlikely to doubt the choice.