The CEO of Lazard Ltd. has made the claim that cryptocurrency could undermine the U.S. dollar’s reserve status, becoming a viable alternative in the future.
Could Digital Currencies Step Up?
Ken Jacobs, CEO of Lazard Ltd., a financial advisory and asset management firm, was speaking in a Bloomberg Television interview yesterday when he made his comments.
Even though the U.S. dollar has been the international currency of choice for more than 50 years, reports Bloomberg, the American currency’s status as the world’s reserve currency could become undermined. Jacobs discussed the possibility of the U.S. dollar being supplanted, saying:
To the extent that we have unilateral foreign policy and unilateral trade policy, we’re sort of tempting the world to find an alternative.
He doesn’t believe that fiat currencies from Europe or China present a threat at the moment, but he claims there are other options. Jacobs added:
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.
Whether or not the cryptocurrency market manages to become that alternative remains to be seen. Yet, since its introduction nearly 10 years ago, the industry has certainly produced an impact. For many, it’s not a case of if cryptocurrencies, such as Bitcoin, become the currency of choice, but when.
Already, the likes of Steve Wozniak, co-founder of Apple, and Jack Dorsey, CEO of Twitter and co-founder of payments processing company Square, are already of the opinion that Bitcoin will serve as the number one global currency in the future. Dorsey has projected that this could happen in 10 years.
Banks Starting to Show Interest
While the cryptocurrency market goes against the grain of the traditional financial establishment, banks have been forced to realize that it’s no longer just about them.
As a result, banks are experimenting with their own centrally-issued digital currencies. Last month, it was reported that Japan’s biggest bank, MUFG, the world’s fourth-largest, is reportedly planning to launch a large-scale trial of its own digital currency. This is expected to take place as early as next year.
In February, Wall Street bank JPMorgan acknowledged that Bitcoin presents a risk to it. Consequently, it has hired a 29-year-old to draw up a cryptocurrency strategy. The role of Oliver Harris will be to identify crypto projects for the bank to develop in-house.
Whereas, the former head of JPMorgan’s blockchain arm, Amber Baldet, is of the opinion that banks will start to trade cryptocurrency sooner than realized.
Do you think the cryptocurrency market could become an alternative to the U.S. dollar’s reserve status? Let us know in the comments below.
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