Executive summary: Bretton Woods III and Crypto
Bretton Woods III predicts the emergence of a new world monetary order. In this article, I explore whether this could come to be and what role cryptocurrencies play.
What you will learn:
- What Bretton Woods III means and how the theory could impact cryptocurrencies.
- Bretton Woods III is a theory about a new world monetary order that will be centered around commdity-based currencies.
- It is the brainchild of macro analyst Zoltan Pozsar, who predicts states to move on the margin into hard assets and commodities as currency reserves.
- Pozsar sees the dollar's dominance declining, as de-globalization and commodity-hoarding drive states into hard assets.
- Several indicators suggest that a marginal move away from the dollar is already underway.
- Critics note that one should not expect a significant weakening of the dollar, as even the US' adversaries are not interested in the dollar losing its dominant position.
- Crypto supports dollar dominance through the availability of stablecoins.
- America may leverage cryptocurrencies in its own interests to strengthen the dollar.