Arthur Hayes’ Exit Liquidity Article Explores America’s Position as Global Reserve Currency Issuer
BitMEX co-founder Arthur Hayes examines de-dollarization and its financial and political implications in an article titled “Exodus from Liquidity.”
Former BitMEX CEO Arthur Hayes recently His views were broadcast When liquidity exits against the US dollar reserve currency status. In a blog post on Medium, the American entrepreneur wrote at length about whether the US dollar could be replaced as the global reserve currency. In addition, Hayes discussed whether China or another powerful country would be willing and able to replace the United States as the source of global reserve currencies.
In his book Liquid Exit, Arthur Hayes explores the suggested signs that “some trade corridors are dumping the dollar” and what portends America.
According to Hayes, reserve currency status imposes certain benefits but also burdens the host nation with cost implications. The BitMEX co-founder defined the main interest as “printing currency at will to pay for real goods.” However, he stressed that this essential benefit does not see an equal distribution among the citizens of the host country.
Arthur Hayes draws liquidity parallels between US havens and Malikis – not in the face of global de-dollarization
Hayes stressed that despite America’s ostentatious levels of wealth, the great power’s problems of political and military inequality are among the worst in the developed world. Moreover, he added, this situation is getting worse even though most of America’s population, who have few financial assets, is suffering from the brunt of the reserve currency situation. According to Hayes, global de-dollarization threatens the position of the American elites who have benefited greatly from the global reserve currency status. However, he also feared that the majority of Americans would become an “exit” to their more privileged citizens in terms of capital expropriation. In Hayes’ opinion, the American financial elite will do anything to remain influential amid de-dollarization. Therefore, such drastic measures to protect their wealth could entail diverting potential global financial repercussions to lesser-known citizens.
Hayes’s writing has shown a series of detailed sketches in support of the inequality argument. For example, one visual representation showed the United States ranked first in the most recent Gini coefficient of gross income inequality among G7 countries. America bested the UK, Germany and Canada with a much higher number of 0.434.
Hayes touches on Asia as a possible successor to the United States’ global reserve currency
Hayes noted that many believe that China can replace the United States as an exporter of reserve currency. However, the former BitMEX CEO stressed that skeptics remain unconvinced due to the unattractive nature of the yuan. In a world where trades are increasingly priced in dollars, Hayes opined that pundits might be wondering what the yuan can buy. According to him, another blow to the yuan is that the Chinese capital account remains closed.
In Hayes’ view, these constraints beg the question of whether China really longs to be the new issuer of the world’s reserve currencies. Moreover, he questioned the extent to which the so-called de-dollarization could lead to the desire for a new global reserve currency. Finally, the former CEO of the crypto business Hayes writes that cryptocurrency could be crucial in shaping new international financial policies. The former co-founder of BitMEX suggested that it is still unknown how the global reserve currency saga will ultimately turn out. However, he is reasonably sure that in the coming years, the world will trade in several currencies instead. In addition, Hayes also predicted that the savings will be in gold and digital assets such as Bitcoin (BTC).
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify cryptocurrency stories down to the bare essentials so that anyone anywhere can understand without much background knowledge. When he’s not deep into cryptocurrency stories, Tolo enjoys music, loves to sing, and is a movie lover.
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