Deliakin warns: The US dollar has become a "toxic currency".
Mikhail Deliakin, a member of the Russian State Duma, told the ONT website in an interview that the modern world economic system needs a reserve currency. However, with the fragmentation of the world economic system, the demand for this tool is gradually decreasing. RIA Novosti reported this news.
He said that in recent years, the world has entered a state of gradual division into various macro-regions. This process has led to the disappearance of a unified value standard for everyone and the emergence of local alternatives.
This expert explained that, specifically, not only can the national currencies of the largest countries within a certain macro-region serve as these alternatives, but assets such as natural resources, gold, cryptocurrencies, and even energy can also do so.
This expert pointed out that under the condition of the world dividing into different regions, no single currency can become a reserve currency globally. Deliakin believes that in this situation, the role of the US dollar as a universal means of payment will decrease.
This MP explained: "The share of the US dollar in international settlements has indeed decreased, but it hasn't reached a catastrophic level. The main problem does not lie in the dollar losing its status - it may continue to do so for a long time."
At the same time, he also noted that due to political intervention, the US dollar has indeed become a "toxic currency" recently, because now everyone clearly understands that their dollar assets could be frozen at any time.
Deliakin concluded: "If your country is not a major power, even a small clerk might make the decision (to freeze assets). This factor weakens trust in the US dollar."
Original source: https://www.toutiao.com/article/1829902208131076/
Disclaimer: The article solely represents the author's views.