• Bank of America analysts argue that the US dollar has no viable alternative and is likely to remain the dominant world currency in the near future.
• 19 countries have applied to join the BRICS group, with discussions about large economies such as Saudi Arabia and Pakistan taking place.
• Many countries are also implementing a dollarization-free policy, reducing dependence on the US dollar.
Bank of America Report Dismisses BRICS, Yuan, and Crypto as Viable Alternatives to Bitcoin
Bank of America analysts recently released a report arguing that none of the much-discussed alternatives to the US dollar — such as BRICS currency, yuan, or cryptocurrencies — can currently surpass its global dominance. The bank claims that there is no risk of losing its global reserve status in the short term.
19 More Countries Apply to Join BRICS Group
Recently, 19 more countries have applied to join the BRICS group, which consists of Russia, China, Brazil, South Africa, and India. These countries will be discussed at an August meeting where larger economies like Saudi Arabia and Pakistan may be accepted into the group.
Dollarization-Free Policy Implemented by Economies
Many economies including those in BRICS are implementing a dollarization-free policy in order to reduce their dependency on US dollars. French President Macron even visited China in order to discuss using Chinese yuan for trade with other countries instead of relying solely on American currency.
US Dollar Has Clear Advantage Over Other Currencies
The report from Bank of America suggests that the US dollar has a huge advantage over other currencies at this time due to its long-held position as global reserve currency. This makes it difficult for any other currency or crypto asset to replace it anytime soon.
Conclusion: No Alternative Currency Can Currently Compete with US Dollar
In conclusion, Bank of America analysts believe that there is currently no viable alternative currency or cryptocurrency that can compete with or replace the US dollar’s dominance on a global level right now. Therefore it is likely that the American currency will remain dominant for some time yet despite recent efforts by some nations to break away from it and diversify their financial portfolios further.