United States Treasury Secretary Scott Bescent recently called for “Bretton Woods Institutions,” such as the International Monetary Fund (IMF), to reinstate themselves, a signal that global finance -finance can move.
Speaking to the Institute of International Finance (IIF) on April 23, Bescent Called to the IMF and the World Bank to correct trade imbalances and protect the cost of fiat currencies against the risk of exchange rate.
“The Bretton Woods institutions should retreat from their dazzling and non -focused agendas,” Bescent said. He added:
“The IMF’s mission is to promote international financial cooperation, facilitate the balance of international trade, encourage economic growth, and discourage harmful policies such as competitive rate exchange rates.”
Bescent’s call for the IMF to correct trading imbalance between countries, specifically the US and China, compatible with a denial of the US dollar Up to three years lows, $ 36 trillion of US government debt, and hard economic competition from China.
Investor and hedge fund manager Ray Dalio Arguments That the world is experiencing a global macroeconomic shift that will increase post-WWII order and eventually replace the US dollar as a global currency reserve, which is potentially with a digital form of money.
Related: Trump tariffs reign the idea that Bitcoin could exceed the US dollar
The Bretton Woods Agreement
The Bretton Woods agreement was signed in 1944 and killed the currencies of 44 countries at the cost of the US dollar, which, at that point, was on the value of gold at $ 35 per ounce.
Removing complex risks to foreign exchange between free floating money to make world trade better the main purpose of the agreement.
In August 1971, US president Richard Nixon announced the Ending the dollar converting to gold – Formal conclusion of the Bretton Woods agreement in a step that should be temporary.
“Your dollar is worth as much tomorrow as it does today,” Nixon incorrectly told Americans during his poor address.
The IMF and the World Bank, who have been spawned from the Bretton Woods agreement, continues to operate in an attempt to hinder the effects of free Fiat Fiat currency in the foreign exchange market.
Bescent Eyes Stablecoins To protect the US dollar, BTC advocates have a different idea
Speaking at the White House Digital Asset Summit on March 7, Bescent said Stablecoins could drive international demand for US dollars and US government debt instruments.
Bessent added that the Trump administration is Use stablecoins to protect the US dollar and its status as a global currency reserve.
Bitcoin Maximalist Max Keizer has argued against this plan, predicting that gold-backed stablecoins outcompete dollar-pegged token Due to the desire for low volume, money resistant to inflation.
In March this year, blackrock CEO Larry Fink wrote that $ 36 trillion US national debt could Drive in Bitcoin investors (Btc) As participants start the market to see BTC as a better value store than the US dollar.
Bitwise executive Jeff Park announced a similar prophecy in February, focusing on the effects of Donald Trump’s trading tariffs.
The analyst wrote that the chaos from the ongoing trade war would cause global inflation, which would cause individuals to look for alternative value stores such as Bitcoin, Its driving price is higher In the long term.
Magazine: Bitcoin payments are weakened by centralized stablecoins
