Former presidential candidate Hillary Clinton has urged nation-states to “start paying greater attention to the rise of cryptocurrency.” She warned that crypto could undermine the role of the dollar as the world’s reserve currency and could destabilize nations.
Hillary Clinton warns cryptocurrency poses risk to US dollar, stability of nations
Former Democratic presidential candidate Hillary Clinton spoke about cryptocurrency on Friday during a panel discussion at the Bloomberg New Economy Forum in Singapore.
While addressing a range of new challenges, including disinformation and artificial intelligence (AI), Clinton said, “One more area that I hope nation-states start paying greater attention to is the rise of cryptocurrency.”
The former secretary of state added:
What looks like a very interesting and somewhat exotic effort to literally mine new coins in order to trade with them has the potential to undermine currencies, undermine the dollar’s role as a reserve currency, destabilize nations, may -being starting with the small ones but going much bigger.
Clinton is not the only one seeing that the rise in popularity of cryptocurrency could hurt the U.S. dollar. Former President Donald Trump has said on several occasions that he does not like cryptocurrency because it competes against the U.S. dollar. “I don’t want to have other currencies coming out and hurting or demeaning the dollar in any way,” he stressed.
In July of last year, world investment bank Goldman Sachs warned that “real concerns about the longevity of the US dollar as a reserve currency have started to emerge.”
Legendary fund manager Stanley Druckenmiller said in May: “I’m worried now for the first time that within 15 years we lose reserve currency status and of course all the unbelievable benefits that have accrued with it.”
However, some people believe that crypto will not replace the dollar as the world’s reserve currency. Mohamed El-Erian, chief economic adviser at financial services firm Allianz, said this week that crypto “will still exist in the ecosystem but it will not be a global currency … It will not replace the dollar.”
