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12 sats \ 1 reply \ @OT OP 17h \ parent \ on: Ray Dalio - It's Too Late: The Changes Are Coming econ
Well... I personally don't have a need to use tether but I believe it has the highest trading volume in crypto. Looks like the market cap is 150b so still quite small. It's used a lot in countries where their currency is inflating rapidly.
They are also one of the biggest buyers of UST and have somewhat of a network effect as the top "stable coin".
So that the thing. No one has heard of mBridge. Maybe governments have IDK. Then it needs to be around for some time before anyone will trust it with serious capital (same as bitcoin).
I think it was Ray Dalio that liked to point out the time it takes to switch world reserve currencies. It takes decades because of old habits and network effects. Maybe the technology allows for a faster move these days but IMO it looks like USD is sticking around for while.
Trump has certainly heard of mBridge.
He threatened very early on that he would put 100% tariffs on any BRICS nations who start using any alternative to the 'wonderful' USD.
https://www.bbc.com/news/articles/cgrwj0p2dd9o (2024 Dec 2)
'Trump threatens 100% tariff on Brics nations if they try to replace dollar'
"We require a commitment from these countries that they will neither create a new Brics currency nor back any other currency to replace the mighty US dollar or they will face 100% tariffs and should expect to say goodbye to selling into the wonderful US economy,”
China has been developing mBridge for many years and its now operational.
They are for obvious reasons not making a lot of noise about it but its also no secret.
It is however a huge, deliberate and direct challenge to USA, USD and SWIFT hegemony.
Dalio is right of course the transition is likely to be gradual ,as it usually has been in the past, although the current situation is quite different from the transition from British to US hegemony, where the transition was fairly smooth as it was between two allies...
Hopefully this current transition which is just beginning, will not be too disruptive, but I wouldn't count on it.
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