Post
Topic
Board Economics
Re: Here is the biggest problem with cryptos
by
abhiseshakana
on 01/08/2020, 05:47:44 UTC
The pump and dump also happen on other markets like penny stocks. The fiat currency can even be manipulated, what do you think will happen if China dumps their USD?

China is not possible to throw away the USD at this time because the OBOR project run by China aims to suck dollars into China. China also understands that foreign exchange reserves in the form of dollars are the most effective instruments for maintaining national economic stability. Although there is the current discourse of dedolarization with the aim of reducing China's dependence on the dollar. But now China is trying to diversify its foreign exchange reserves from the dollar to other forms and China is trying to increase its gold foreign exchange reserves. In the end, China will still use the dollar because the American market is still needed by Chinese products.