I think the new monetary order is coming into focus for me.
The US is going toward 1:1 backed stablecoins. There's tension over how much control to exert over them. The less control, the more likely these coins are to permeate different countries around the world - and the US government would love it if everyone adopted them. Also the US has not yet played the Apple/Google/Meta cards, which are powerful cards in deciding what money everyone uses.
BRICS is going to implement a digital settlement system across its member currencies, then settle any imbalances with gold. I don't think they'll create a gold-backed currency, as no government would voluntarily do that, but they need a reliable mechanism to settle trade imbalances.
The EU is in a tough spot. Euro-backed stablecoins haven't gained much traction globally, so copying the US model is likely a losing strategy. The US would never allow the EU to join BRICS, so that's not an option. If EU states want to retain influence, they may have to go full CBDC and mandate its use among their citizens.
Then, of course, there's the rest of the world. They are going to be very vulnerable to currency substitution. We can hope that some see the route that El Salvador has taken as a possible model.
Of course none of these fiat games will last, but for how long is impossible to tell.
The US is going toward 1:1 backed stablecoins. There's tension over how much control to exert over them. The less control, the more likely these coins are to permeate different countries around the world - and the US government would love it if everyone adopted them. Also the US has not yet played the Apple/Google/Meta cards, which are powerful cards in deciding what money everyone uses.
BRICS is going to implement a digital settlement system across its member currencies, then settle any imbalances with gold. I don't think they'll create a gold-backed currency, as no government would voluntarily do that, but they need a reliable mechanism to settle trade imbalances.
The EU is in a tough spot. Euro-backed stablecoins haven't gained much traction globally, so copying the US model is likely a losing strategy. The US would never allow the EU to join BRICS, so that's not an option. If EU states want to retain influence, they may have to go full CBDC and mandate its use among their citizens.
Then, of course, there's the rest of the world. They are going to be very vulnerable to currency substitution. We can hope that some see the route that El Salvador has taken as a possible model.
Of course none of these fiat games will last, but for how long is impossible to tell.
