The end of US$: what comes next?

The US dollar has held sway over the international financial stage for numerous decades, acting as the foremost global reserve currency. Nevertheless, contemporary dialogues and shifts in geopolitical dynamics have cast doubts on the dollar's forthcoming role in the global economic landscape. Although it may not be readily evident that Bitcoin will assume the mantle of the next world reserve currency, the next world reserve currency is very likely to be digital. In this piece, we will delve into the historical backdrop of reserve currencies and then in a separate article we will consider the ramifications of a potential decline in the dollar's status, and the potential ascent of digital currencies.

An historical perspective

In the history of global reserve currencies, key shifts have shaped today's financial landscape. During the Italian Renaissance, the Florentine florin pioneered standardized currencies and modern monetary systems. In the 16th century, the Spanish ducat's ascendancy m…