“In the U.S., there is confusion and a lack of regulatory clarity. Companies that have done their best to comply with regulations are being arbitrarily penalized by U.S. regulators.” “Innovators will leave the U.S. for other countries. This will It will adversely affect the U.S. dollar hegemony around the world and create more opportunities for other countries.”
In the field of Web3.0, from a technical point of view, there are two main paths to carry out "de-dollarization", one is to increase multi-asset reserves to reduce the dependence on US dollars; the other is to replace SWIFT The digital fiat currency CBDC issued by the central bank.
Original: The Paper
Author: Bi Lianghuan/Chief Researcher of Okey Cloud Chain Research Institute
In the early hours of May 17, the U.S. Securities and Exchange Commission (SEC) declined a petition submitted by Coinbase, the largest cryptocurrency exchange in the United States, in July 2022 to formulate specific regulations for digital assets. Since the end of last year, U.S. supervision has been frequent. In May, Bittrex Inc. and its affiliates, which had shut down U.S. operations due to a regulatory crackdown, declared bankruptcy. In addition, Ripple, an early head encryption project, has spent $200 million in litigation with the SEC. Such incidents triggered discussions among industry experts on the financial status of the United States and encryption regulation. These issues also became hot topics at the "2023 Consensus Conference (Consensus 2023)" at the end of April. The guest speaker who talked about this topic, David David Shrier and Austin Champbell also visited Okey Cloud Chain Research Institute in Austin, USA.
The "2023 Consensus Conference" will be held in Austin, USA in April.
This article will speculate on the future form of currency through the analysis of the "de-dollarization" path of Web3.0.
The U.S. encryption market has been "enduring" a regulatory environment that lacks clear regulatory rules. Coupled with the deterioration of the macro environment, some Web3.0 companies have begun to flee the United States. At the same time, some government agencies also began to reduce their dependence on the US dollar as early as 2008. Recently, U.S. Treasury Secretary Yellen has issued consecutive warnings, saying that the risk of U.S. debt default will trigger a greater economic disaster. More than 25 countries now use the yuan to trade with China, and two giant emerging economies, Russia and India, have begun to conduct business in currencies other than the U.S. dollar.
The proportion of U.S. dollars in global foreign exchange reserves has dropped from 70%+ to 40%+, and the downward trend will continue from 2021 to 2022. Source: IMF
The de-dollarization of traditional financial markets is nothing new, while the de-dollarization of Web3.0 is in progress. In 2023, "de-dollarization" has become a hot topic on the Internet, which seems to herald the end of the American financial prosperity. “It’s the best argument for de-dollarization I’ve ever seen,” said Austin Campbell, a professor at Columbia Business School and founder of Zero Knowledge Consulting, commenting on a statement by a U.S. congressman.
The Recession of the "King of Currency"
After World War II, the United States relied on its strong economic and military strength and its gold reserves, which accounted for 80% of the world, to establish the Bretton Woods system, which was based on the US dollar and made the US dollar the world's most important reserve currency. Replaced the British Pound as the "King of Currencies". In addition, SWIFT, founded in 1973, is responsible for the settlement between global systems, and an important part of this tool that provides transaction services for more than 200 countries and regions is the U.S. dollar large-value clearing system, which means that SWIFT It has long been a tool for the United States to cut off all information flow links between sanctioned countries and the US dollar.
Demand for U.S. dollars has dwindled in recent years as the global economy has slowed. In addition, the large-scale quantitative easing policy adopted by the Federal Reserve before the epidemic has led to a large amount of liquidity release. The current US national debt has exceeded 31 trillion US dollars, and the huge financial derivatives that followed have made the overall US economic environment extremely sensitive to changes in the base interest rate. sensitive. In response to the economic consequences of the loose policy, the largest interest rate hike in 40 years was recently implemented, which further attracted global capital to return to the US market, causing many economies to fall into a liquidity trap. Therefore, emerging economies also recognize the risks of holding large amounts of dollars and begin to reduce their dollar holdings. In the final analysis, the direct cause of this round of de-dollarization is the Fed’s interest rate hike.
The U.S. macro economy is facing multiple challenges such as interest rate hikes, inflation and high unemployment, and these problems are spreading in the U.S. economy that is struggling to survive. Although some companies are emerging in an endless stream of innovations in emerging core technologies such as AI, brain-computer interface, and space technology, emerging technologies also bring about problems when they bring economic growth. For the recent hot AI technology, according to the latest Goldman Sachs report, 300 million people in Europe and the United States will lose their jobs due to AI, which will further deepen the difficulties brought about by the macro economy. "In the next 5 to 10 years, not 30 years later, we need to come up with solutions to deal with. Otherwise, we will face large-scale problems such as social unrest, famine and government collapse." David Shirley, Imperial College London Prof. Err commented.
Against this backdrop, U.S. regulators seem to be sticking to the old rule that they only come in after major financial crises like the Great Depression, the 1987 stock market crash, 9/11, the Great Recession, and the Covid-19 pandemic. regulatory policy. As far as the crypto industry is concerned, recent regulations have targeted restrictions on the cryptocurrency market. Judging from the current situation, the unclear supervision seems to be "adding insult to injury", accelerating the escape of Web3.0 innovation from the "grey area" of the United States full of uncertainties. Coinbase is considering launching an overseas trading desk amid U.S. regulatory uncertainty. Circle, the issuer of the USDC stablecoin, is opening a new office in Paris.
In addition, the asset shortage caused by the global interest rate hike has also allowed regulators to "target" one of the most active markets - encrypted assets. "Unfortunately, in the United States, there is confusion and a lack of regulatory clarity. Some companies have tried their best to comply with regulations, but they have been arbitrarily punished by US regulators." Professor Schrier talked about concerns about the status quo in the United States , "Innovators will leave the United States and go to other countries. This will have an adverse impact on the US dollar hegemony around the world and create more opportunities for other countries." Professor Campbell analyzed the root causes of this regulatory confusion— — "The source of this confusion is designed by the American political system."
Multiple-reserve encrypted assets and replace SWIFT "weaponized" CBDC
Although various countries and regions are promoting the de-dollarization process in order to resist risks, nothing can be achieved overnight. The US dollar still occupies a major share of global foreign exchange reserves. It can be said that the process is only at the beginning stage. In the field of Web3.0, from a technical point of view, there are two main paths to carry out "de-dollarization". One is the path of encrypted assets used to increase multi-asset reserves to reduce dependence on the US dollar; the other is the central bank that replaces SWIFT The digital legal currency CBDC (Central Bank Digital Currency) issued, whose core lies in the application of blockchain technology, can build a decentralized or multi-centralized financial system, so that countries or institutions no longer depend on the US dollar or other currencies in financial transactions. A centralized currency system reduces risks.
Due to the characteristics of the underlying technology blockchain, encrypted assets have built new trust in the financial market. Modern finance is essentially a credit transaction, and market trust is one of the core elements that affect the stability of the financial market. The measures taken by the United States in the past such as sanctions and incitement to unrest have caused a loss of market trust, which is also the root cause of de-dollarization. Therefore, in addition to adopting multiple currencies instead of the U.S. dollar to combat risks, digital assets have also become a means of choice for institutions, especially those developing countries whose currencies do not work well. Back in 2021, El Salvador became the first country to officially include bitcoin on its balance sheet and deposit it in reserves. The Norwegian government pension fund, the world's largest sovereign fund, also uses Bitcoin as one of its asset allocations.
The blockchain technology of encrypted assets enables transaction data to be publicly recorded on a decentralized network, and anyone can view and verify transaction records, which enhances user trust in transactions. In addition, encrypted assets use cryptographic algorithms to protect transaction security, so that transaction records cannot be tampered with. This kind of decentralization and other characteristics can impact a certain institution's control over the currency system to a certain extent. Encrypted assets are gradually entering people's field of vision and become an alternative asset allocation in multi-asset allocation. Of course, new types of assets also naturally bring new risks. Due to the anonymity and untraceability of encrypted asset transactions, they may become tools for money laundering and terrorist financing. Therefore, anti-money laundering and anti-terrorist financing have also become the focus of national supervision and various agencies in the industry involving encrypted assets.
Not only encrypted assets, but also the digital currency issued by central banks that have been deeply discussed and practiced by various countries and regions——CBDC has also become another path choice for some countries and institutions to de-dollarize. The “Petro”, which was first launched to bypass US sanctions, was launched by Venezuela in 2018. As a digital currency issued by the central bank, CBDC has the characteristics of transaction convenience, less transaction friction, and transparency. There are three reasons for de-dollarization: First, it can better help countries realize local currency settlement transactions and reduce the exchange rate for other countries such as the U.S. dollar. The reliance on currency or leading settlement tools improves payment efficiency; second, in cross-border transactions of international trade, it can help reduce exchange rate risks; third, for some countries that are currently using the US dollar as their national legal tender, CBDC can also help Improve financial inclusion by addressing cash liquidity issues. In February of this year, Japan, the United Kingdom, Canada, Switzerland, and the European Central Bank have jointly formed a group to jointly develop digital assets, hoping to bypass the US dollar through digital assets and form multilateral trade based on digital assets.
"If the digital currencies (CBDC) of various countries are built on different chains, how to achieve interoperability between them will become a problem." At this year's Consensus Conference, Chainlink co-founder Sergei Nazha Rove (Sergey Nazarov) raised such a question. In order to solve this problem, the international community not only conducts multilateral consultations, but also explores and implements technical cooperation. For example, Project Icebreaker (icebreaking project) jointly completed by the Nordic Center of the Bank for International Settlements (BIS) Innovation Center and the central banks of Israel, Norway and Sweden; the Hong Kong Monetary Authority (HKMA), the Bank of Thailand (BOT), and the Central Bank of the United Arab Emirates (CBUAE) The mBridge project jointly initiated by the Digital Currency Research Institute of the People's Bank of China.
Taking mBridge as an example, the project has developed a new native blockchain, the mBridge Ledger (mBL), to meet the needs of central banks and commercial participants. The core of mBL is the central bank, each of which runs a verification node and jointly operates the consensus protocol of mBL. The central bank's validating nodes form a complete, connected graph with a link between every pair of nodes. Each central bank can connect its domestic commercial banks to the platform, and commercial banks in each jurisdiction are connected to connected central banks and thus to validating nodes. And in terms of technical architecture, a multi-layer structure is set up, from the basic service layer to the application layer to the authority layer. Only by adding business requirements such as the compliance requirements (AML) specially emphasized by the financial system can it be truly used by financial institutions. Compared with traditional legal currency, CBDC has higher cross-border payment efficiency and transparency. By adding mechanisms such as real-name authentication system and automated detection and AML tools, the compliance cost of using CBDC is also lower. Commercial banks in each jurisdiction can be connected to the verification core of mBL to realize the intercommunication between digital currencies. This process is like connecting multiple islands through bridges to form a continent, allowing digital currencies to circulate, transfer and settle between different countries.
The common platform was tested on the ground from August 15 to September 23, 2022. 20 commercial banks from Hong Kong and China, the United Arab Emirates and Thailand used the CBDC issued by their respective central banks on the mBridge platform to represent their corporate customers Payments and foreign exchange (FX) simultaneous delivery (PvP) transactions were made. “Interoperability is a key factor for a CBDC to reach its full potential,” Nazarov said.
mBridge architecture. Source: BIS
Multiple and multi-polar currency future form conjecture
The famous economist Milton Friedman (Milton Friedman) predicted in 1999 that there will be a virtual currency in the future, which will become a global currency that can be used for cross-border transactions and payments. Economist Fernando Alvarez (Fernando Alvarez) also made a statement saying, "The form of currency in the future will be more diversified, digital currency and cryptocurrency will become mainstream, but traditional currency will continue to exist, and currency will continue to exist." The choice will depend on market demand and personal preference." This world of money built on blockchain technology seems to be coming towards us.
At present, encrypted assets are still a niche asset, but digital assets including CBDC are gradually emerging. In the future, digital assets may present a market structure in which the private market fiat currency stable currency and CBDC coexist. From the perspective of global hedging properties, in the first quarter of 2023, the global official gold reserves increased by 228 tons, setting a record high in the first quarter. Global central banks are actively increasing asset diversity, and cryptocurrencies will also be increasingly considered for inclusion in multi-asset reserves due to their independence. The process of decentralization will not be stagnant due to the restrictions of a country, and digital assets will present a diversified form of digitization, multi-centralization, and not limited to legal currency.
"Currency is both a social structure and a government structure." Christopher Giancarlo, former chairman of the Commodity and Futures Trading Commission (CFTC), said at the Consensus Conference that the meaning of currency itself is not limited to finance. The future form of currency will be continuously promoted by the big hands of the macro economy, and will continue to evolve in the direction of decentralization, and there will be no global reserve currency hegemony.
In March 2022, Credit Suisse strategist Zoltan Pozsar published a research memo titled "Bretton Woods III." He sees Western sanctions on Russia as an inflection point that will push the economy into a new world monetary order. This could lead to an accelerated de-dollarization trend, but the dollar still has a large share. The advanced Web3.0 field is constantly developing, just like sand table simulation, it will provide more possibilities and choices, more innovations and breakthroughs. We will witness this historical change, as well as the emergence of a wider range of financial innovation applications and a more inclusive, fairer, and more stable future of a multi-polar financial ecology.
(This article is jointly released by Pengpai Technology and Ooke Cloud Chain Research Institute.)
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The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
The ultimate guess on the future form of currency from the "de-dollarization" of Web3.0
Original: The Paper
Author: Bi Lianghuan/Chief Researcher of Okey Cloud Chain Research Institute
In the early hours of May 17, the U.S. Securities and Exchange Commission (SEC) declined a petition submitted by Coinbase, the largest cryptocurrency exchange in the United States, in July 2022 to formulate specific regulations for digital assets. Since the end of last year, U.S. supervision has been frequent. In May, Bittrex Inc. and its affiliates, which had shut down U.S. operations due to a regulatory crackdown, declared bankruptcy. In addition, Ripple, an early head encryption project, has spent $200 million in litigation with the SEC. Such incidents triggered discussions among industry experts on the financial status of the United States and encryption regulation. These issues also became hot topics at the "2023 Consensus Conference (Consensus 2023)" at the end of April. The guest speaker who talked about this topic, David David Shrier and Austin Champbell also visited Okey Cloud Chain Research Institute in Austin, USA.
This article will speculate on the future form of currency through the analysis of the "de-dollarization" path of Web3.0.
The U.S. encryption market has been "enduring" a regulatory environment that lacks clear regulatory rules. Coupled with the deterioration of the macro environment, some Web3.0 companies have begun to flee the United States. At the same time, some government agencies also began to reduce their dependence on the US dollar as early as 2008. Recently, U.S. Treasury Secretary Yellen has issued consecutive warnings, saying that the risk of U.S. debt default will trigger a greater economic disaster. More than 25 countries now use the yuan to trade with China, and two giant emerging economies, Russia and India, have begun to conduct business in currencies other than the U.S. dollar.
The de-dollarization of traditional financial markets is nothing new, while the de-dollarization of Web3.0 is in progress. In 2023, "de-dollarization" has become a hot topic on the Internet, which seems to herald the end of the American financial prosperity. “It’s the best argument for de-dollarization I’ve ever seen,” said Austin Campbell, a professor at Columbia Business School and founder of Zero Knowledge Consulting, commenting on a statement by a U.S. congressman.
The Recession of the "King of Currency"
After World War II, the United States relied on its strong economic and military strength and its gold reserves, which accounted for 80% of the world, to establish the Bretton Woods system, which was based on the US dollar and made the US dollar the world's most important reserve currency. Replaced the British Pound as the "King of Currencies". In addition, SWIFT, founded in 1973, is responsible for the settlement between global systems, and an important part of this tool that provides transaction services for more than 200 countries and regions is the U.S. dollar large-value clearing system, which means that SWIFT It has long been a tool for the United States to cut off all information flow links between sanctioned countries and the US dollar.
Demand for U.S. dollars has dwindled in recent years as the global economy has slowed. In addition, the large-scale quantitative easing policy adopted by the Federal Reserve before the epidemic has led to a large amount of liquidity release. The current US national debt has exceeded 31 trillion US dollars, and the huge financial derivatives that followed have made the overall US economic environment extremely sensitive to changes in the base interest rate. sensitive. In response to the economic consequences of the loose policy, the largest interest rate hike in 40 years was recently implemented, which further attracted global capital to return to the US market, causing many economies to fall into a liquidity trap. Therefore, emerging economies also recognize the risks of holding large amounts of dollars and begin to reduce their dollar holdings. In the final analysis, the direct cause of this round of de-dollarization is the Fed’s interest rate hike.
The U.S. macro economy is facing multiple challenges such as interest rate hikes, inflation and high unemployment, and these problems are spreading in the U.S. economy that is struggling to survive. Although some companies are emerging in an endless stream of innovations in emerging core technologies such as AI, brain-computer interface, and space technology, emerging technologies also bring about problems when they bring economic growth. For the recent hot AI technology, according to the latest Goldman Sachs report, 300 million people in Europe and the United States will lose their jobs due to AI, which will further deepen the difficulties brought about by the macro economy. "In the next 5 to 10 years, not 30 years later, we need to come up with solutions to deal with. Otherwise, we will face large-scale problems such as social unrest, famine and government collapse." David Shirley, Imperial College London Prof. Err commented.
Against this backdrop, U.S. regulators seem to be sticking to the old rule that they only come in after major financial crises like the Great Depression, the 1987 stock market crash, 9/11, the Great Recession, and the Covid-19 pandemic. regulatory policy. As far as the crypto industry is concerned, recent regulations have targeted restrictions on the cryptocurrency market. Judging from the current situation, the unclear supervision seems to be "adding insult to injury", accelerating the escape of Web3.0 innovation from the "grey area" of the United States full of uncertainties. Coinbase is considering launching an overseas trading desk amid U.S. regulatory uncertainty. Circle, the issuer of the USDC stablecoin, is opening a new office in Paris.
In addition, the asset shortage caused by the global interest rate hike has also allowed regulators to "target" one of the most active markets - encrypted assets. "Unfortunately, in the United States, there is confusion and a lack of regulatory clarity. Some companies have tried their best to comply with regulations, but they have been arbitrarily punished by US regulators." Professor Schrier talked about concerns about the status quo in the United States , "Innovators will leave the United States and go to other countries. This will have an adverse impact on the US dollar hegemony around the world and create more opportunities for other countries." Professor Campbell analyzed the root causes of this regulatory confusion— — "The source of this confusion is designed by the American political system."
Multiple-reserve encrypted assets and replace SWIFT "weaponized" CBDC
Although various countries and regions are promoting the de-dollarization process in order to resist risks, nothing can be achieved overnight. The US dollar still occupies a major share of global foreign exchange reserves. It can be said that the process is only at the beginning stage. In the field of Web3.0, from a technical point of view, there are two main paths to carry out "de-dollarization". One is the path of encrypted assets used to increase multi-asset reserves to reduce dependence on the US dollar; the other is the central bank that replaces SWIFT The digital legal currency CBDC (Central Bank Digital Currency) issued, whose core lies in the application of blockchain technology, can build a decentralized or multi-centralized financial system, so that countries or institutions no longer depend on the US dollar or other currencies in financial transactions. A centralized currency system reduces risks.
Due to the characteristics of the underlying technology blockchain, encrypted assets have built new trust in the financial market. Modern finance is essentially a credit transaction, and market trust is one of the core elements that affect the stability of the financial market. The measures taken by the United States in the past such as sanctions and incitement to unrest have caused a loss of market trust, which is also the root cause of de-dollarization. Therefore, in addition to adopting multiple currencies instead of the U.S. dollar to combat risks, digital assets have also become a means of choice for institutions, especially those developing countries whose currencies do not work well. Back in 2021, El Salvador became the first country to officially include bitcoin on its balance sheet and deposit it in reserves. The Norwegian government pension fund, the world's largest sovereign fund, also uses Bitcoin as one of its asset allocations.
The blockchain technology of encrypted assets enables transaction data to be publicly recorded on a decentralized network, and anyone can view and verify transaction records, which enhances user trust in transactions. In addition, encrypted assets use cryptographic algorithms to protect transaction security, so that transaction records cannot be tampered with. This kind of decentralization and other characteristics can impact a certain institution's control over the currency system to a certain extent. Encrypted assets are gradually entering people's field of vision and become an alternative asset allocation in multi-asset allocation. Of course, new types of assets also naturally bring new risks. Due to the anonymity and untraceability of encrypted asset transactions, they may become tools for money laundering and terrorist financing. Therefore, anti-money laundering and anti-terrorist financing have also become the focus of national supervision and various agencies in the industry involving encrypted assets.
Not only encrypted assets, but also the digital currency issued by central banks that have been deeply discussed and practiced by various countries and regions——CBDC has also become another path choice for some countries and institutions to de-dollarize. The “Petro”, which was first launched to bypass US sanctions, was launched by Venezuela in 2018. As a digital currency issued by the central bank, CBDC has the characteristics of transaction convenience, less transaction friction, and transparency. There are three reasons for de-dollarization: First, it can better help countries realize local currency settlement transactions and reduce the exchange rate for other countries such as the U.S. dollar. The reliance on currency or leading settlement tools improves payment efficiency; second, in cross-border transactions of international trade, it can help reduce exchange rate risks; third, for some countries that are currently using the US dollar as their national legal tender, CBDC can also help Improve financial inclusion by addressing cash liquidity issues. In February of this year, Japan, the United Kingdom, Canada, Switzerland, and the European Central Bank have jointly formed a group to jointly develop digital assets, hoping to bypass the US dollar through digital assets and form multilateral trade based on digital assets.
"If the digital currencies (CBDC) of various countries are built on different chains, how to achieve interoperability between them will become a problem." At this year's Consensus Conference, Chainlink co-founder Sergei Nazha Rove (Sergey Nazarov) raised such a question. In order to solve this problem, the international community not only conducts multilateral consultations, but also explores and implements technical cooperation. For example, Project Icebreaker (icebreaking project) jointly completed by the Nordic Center of the Bank for International Settlements (BIS) Innovation Center and the central banks of Israel, Norway and Sweden; the Hong Kong Monetary Authority (HKMA), the Bank of Thailand (BOT), and the Central Bank of the United Arab Emirates (CBUAE) The mBridge project jointly initiated by the Digital Currency Research Institute of the People's Bank of China.
Taking mBridge as an example, the project has developed a new native blockchain, the mBridge Ledger (mBL), to meet the needs of central banks and commercial participants. The core of mBL is the central bank, each of which runs a verification node and jointly operates the consensus protocol of mBL. The central bank's validating nodes form a complete, connected graph with a link between every pair of nodes. Each central bank can connect its domestic commercial banks to the platform, and commercial banks in each jurisdiction are connected to connected central banks and thus to validating nodes. And in terms of technical architecture, a multi-layer structure is set up, from the basic service layer to the application layer to the authority layer. Only by adding business requirements such as the compliance requirements (AML) specially emphasized by the financial system can it be truly used by financial institutions. Compared with traditional legal currency, CBDC has higher cross-border payment efficiency and transparency. By adding mechanisms such as real-name authentication system and automated detection and AML tools, the compliance cost of using CBDC is also lower. Commercial banks in each jurisdiction can be connected to the verification core of mBL to realize the intercommunication between digital currencies. This process is like connecting multiple islands through bridges to form a continent, allowing digital currencies to circulate, transfer and settle between different countries.
The common platform was tested on the ground from August 15 to September 23, 2022. 20 commercial banks from Hong Kong and China, the United Arab Emirates and Thailand used the CBDC issued by their respective central banks on the mBridge platform to represent their corporate customers Payments and foreign exchange (FX) simultaneous delivery (PvP) transactions were made. “Interoperability is a key factor for a CBDC to reach its full potential,” Nazarov said.
Multiple and multi-polar currency future form conjecture
The famous economist Milton Friedman (Milton Friedman) predicted in 1999 that there will be a virtual currency in the future, which will become a global currency that can be used for cross-border transactions and payments. Economist Fernando Alvarez (Fernando Alvarez) also made a statement saying, "The form of currency in the future will be more diversified, digital currency and cryptocurrency will become mainstream, but traditional currency will continue to exist, and currency will continue to exist." The choice will depend on market demand and personal preference." This world of money built on blockchain technology seems to be coming towards us.
At present, encrypted assets are still a niche asset, but digital assets including CBDC are gradually emerging. In the future, digital assets may present a market structure in which the private market fiat currency stable currency and CBDC coexist. From the perspective of global hedging properties, in the first quarter of 2023, the global official gold reserves increased by 228 tons, setting a record high in the first quarter. Global central banks are actively increasing asset diversity, and cryptocurrencies will also be increasingly considered for inclusion in multi-asset reserves due to their independence. The process of decentralization will not be stagnant due to the restrictions of a country, and digital assets will present a diversified form of digitization, multi-centralization, and not limited to legal currency.
"Currency is both a social structure and a government structure." Christopher Giancarlo, former chairman of the Commodity and Futures Trading Commission (CFTC), said at the Consensus Conference that the meaning of currency itself is not limited to finance. The future form of currency will be continuously promoted by the big hands of the macro economy, and will continue to evolve in the direction of decentralization, and there will be no global reserve currency hegemony.
In March 2022, Credit Suisse strategist Zoltan Pozsar published a research memo titled "Bretton Woods III." He sees Western sanctions on Russia as an inflection point that will push the economy into a new world monetary order. This could lead to an accelerated de-dollarization trend, but the dollar still has a large share. The advanced Web3.0 field is constantly developing, just like sand table simulation, it will provide more possibilities and choices, more innovations and breakthroughs. We will witness this historical change, as well as the emergence of a wider range of financial innovation applications and a more inclusive, fairer, and more stable future of a multi-polar financial ecology.
(This article is jointly released by Pengpai Technology and Ooke Cloud Chain Research Institute.)