Ruchir Sharma, the chief global strategist at Morgan Stanley Investment Banking, has added his voice to that of many optimists who think that Bitcoin will evolve as a Global Reserve Currency.
The fund manager and writer on global economics shared his thoughts in an article he wrote for Financial Times today.
According to Sharma, the United States dollar still enjoys international recognition as a “reserve currency” because it is generally accepted as a worldwide medium of exchange. However, the dollar may soon get dethroned by an emerging sovereign coin, Bitcoin.
The Morgan Stanley strategist noted that Bitcoin’s decentralized nature made it a hotline for investors during and after the pandemic; this gives the currency an edge to contend with the dollar.
More than that, the fund manager argued that bitcoin is increasingly reaching out to replace the dollar as a means of settling international transactions for both institutional and individual businesses.
Commenting on Bitcoin as a store of value, Sharma mentioned that some financial service platforms in the likes of PayPal have started to acquire BTC in large volumes, hoping to resume accepting payment in digital currency starting next year.
Moreover, as bitcoin surges, the dollar, on the other hand, blinks a red light as the U.S. increasingly gets indebted up to 67% in terms of liability to other countries. This may likely lead to the dollar’s fall in value if the world at large loses trust for it.
In the wake of the pandemic, many publicly-traded companies have added BTC to their portfolio as a primary treasury reserve strategy, believing that Bitcoin is better than fiat currencies. Coinfomania recently reported that MicroStrategy now holds up to 40,824BTC or 0.194% of the total bitcoin supply, converting $475 million of its cash assets to bitcoin.
