Corona pandemic has affected the major sectors of various industries across the globe and the financial sector is one of the sectors that has had a huge hit and severely affected by Covid 19.
Many parts of the world are suffering from financial crisis due to the situation because of the lock down period which has had a major impact on the businesses.
This pandemic has pushed the US government to put in their major efforts in fiscal stimulus which according to the financial experts could lead to the devaluation of the US dollar.
This has become a major concern among the financial experts who feel that devaluation of the US dollar could also mean strengthening of other stores of value such as yuan, gold or crypto.
Adding to this, Garlinghouse the CEO of Ripples had recently tweeted that though US currency has a strong position of being the backbone of the global financial Infra and is not going to disappear in favor of other assets but is weaker than other assets. https://t.co/Td04uJOEXs
Garlinghouse also added that the traditional monetary system was as strong as the trust of the people on the system but the fiat currencies are losing it now.
It is also stated that the global financial system will take to diversification as the global population would continue to lose their confidence in the fiat currencies and many financial experts who have expressed their concern have also noted that the block chain technology which is the foundation of the cryptocurrency have already gained influential proponents.
As Garlinghouse has stated that currently the cryptocurrency is up by 80% and the US dollar is down by 3% and this indicates that the position of the US dollar is not good currently making the cryptocurrency stronger than the US dollar. Source link : http://decrypt.co/37553/
Most of the people are found to be saying it is not such a bad idea to be decentralized and the co-founder and head of research at fund start Global advisors had told that the less trust you have in the dollar the more you want alternatives.
It has also been noted that people are looking for alternatives to the US dollar and the cryptocurrency emerges as the best option.