The chairman and chief investment officer of the Duquesne Family Office, Stanley Druckenmiller, believes that the future of the US dollar as the world’s reserve currency is under threat from cryptocurrencies.
In a CNBC interview, Druckenmiller confirms his view that a “crypto-derived ledger system” is likely to take the dollar’s place as a global reserve asset.
“I think the most likely replacement would be some kind of a ledger system, invented by some kid from MIT (Massachusetts Institute of Technology) or Stanford (University) or some other engineering school, that hasn’t even happened yet, that can replace the dollar worldwide.”
Druckenmiller lays the blame squarely on Federal Reserve chairman Jerome Powell and other central bank heads for breaking trust with loose monetary policies.
“You probably don’t remember this joke but five or six years ago I said that crypto was a solution in search of a problem. And that’s why I didn’t play the first wave of crypto because we already had the dollar. What do we need crypto for? Well, the problem has been clearly identified. It’s Jerome Powell and the rest of the world’s central bankers. There is a lack of trust.”
The former hedger fund manager argues that debt monetization will be the root cause of the dollar losing its global reserve currency status.
“If we’re going to monetize our debt and we’re going to enable more and more of this spending, that’s why I’m worried now for the first time that within 15 years we lose reserve currency status and of course all the unbelievable benefits that have accrued with it.”
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Featured Image: Shutterstock/Mmaxer/Aui Meesri
