Could a collapse of cryptocurrencies force a reform of the global monetary system
Repost from 8-10-2021
“Once gold was removed from the mix, though, the Bretton Woods system broke down and was abandoned in 1973. Since then, the world has been flying blind. Indeed, we have — in the words of Jacques de Larosière, the former managing director of the International Monetary Fund — a global monetary non-system.”
USAGOLD note: Some interesting history from Johns Hopkins economics professor Steve Hanke, an expert on currency systems. He does not elaborate on the possibility of a cryptocurrency collapse – only mentions it as a possibility at the end of the editorial while calling for a New Bretton Woods-style monetary conference.Though we are not ready defenders of the crytocurrencies, how their collapse might catalyze a new monetary system escapes us. Of much greater significance, in our view, is the steady migration from the U.S. dollar among global central banks to other currencies and gold, much as what happened to the British pound following World War II and the inception of the Bretton Woods system.