DONALD Trump’s international trade tariff’s could be the first major step towards Bitcoin becoming the global reserve currency, according to Lazard —, the world’s leading financial advisory and asset management firm.
Asked about the trade issue, Lazard’s Chairman and CEO, Kenneth M. Jacobs says that for years, the US dollar has been the preferred reserve currency of the world due to its stability.
But he went on to explain that increasingly unilateral economic and trade policies could threaten that status.
With news growing daily of tit for tat international trade tariffs and polarisation in American politics becoming more extreme with Trump using the phrase “trade war”
Current polarisation in American is causing policies to become more extreme, Jacobs warned that could lead to the weakening of the economic grip the US has on the world’s markets.
Economic experts and even the President of the United States are tossing around the phrase “trade war” on a fairly regular basis.
“Probably the greatest demonstration of soft power is the fact that the U.S. has the reserve currency of the world . . . That’s not going away overnight but to the extent that we have unilateral foreign policy and unilateral trade policy, we’re sort of tempting the world to find an alternative to kind of clear and use something other than the US dollar,” Jacobs said on Bloomberg TV.
The US dollar has been the international currency of choice for more than half a century because of its stability in global markets.
Threats to that status are still far off, Jacobs said, because the main currencies in Europe and China are unlikely replacements, but added a caveat.
“There’s enough technology out in the world today with cryptocurrency and changes going on that you can imagine, if you let your mind wander a little bit, that something becomes an alternative in the future and we shouldn’t be tempting fate like that because it is such a contributor to US success,” he added.
Lazard managed more than $250 billion of assets as of the end of March, and is one of the world’s top 10 merger advisers.