Asset management company Lazard’s CEO, Ken Jacobs, believes that crypto has the potential to replace the US dollar. In an interview with Bloomberg, Jacobs said, “To the extent that we have unilateral foreign policy and unilateral trade policy, we’re sort of tempting the world to find an alternative. Probably the greatest demonstration of soft power is the fact that the U.S. has the reserve currency of the world.”
Satoshi Nakamoto created Bitcoin a decade ago with a simple idea in mind: to create a decentralized payment system that could work internationally. Cryptocurrencies may have different consensus algorithms, transaction times and costs, but they all perform the same function: making payments easier for people all over the world.
Often termed as the “safe-haven currency”, the US dollar has dominated the world reserve market ever since the 20th century. Currently, the euro and Chinese yen follow closely behind the dollar. Jacobs said that technological advancements in crypto can lead to solutions that suit the public better than the current options.
[T]here’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.
A few years ago, many business executives were calling cryptocurrencies volatile. They said that the craze would eventually go away, however, the entire world was shocked when Bitcoin’s price, along with other cryptocurrencies, broke records in 2017. Now, people are starting to believe in a decentralized digital currency – but there is still a long way to go.
Adena Friedman, Nasdaq’s President and CEO, also spoke about crypto at the Bloomberg Invest Summit. She said that cryptocurrencies could become the “financial element of the Internet”. Friedman added that cryptocurrencies are at “the height of a hype cycle” and that after a few years, only one of these will survive.