An informative article on current pain points of global economy was recently written by Anchor CEO, Daniel Popa, and was published on Cryptonews, one of the most active and trusted news platforms covering events from the cryptocurrency landscape.
The article focused on the current absence of a Universal Financial Standard, the volatility of the US Dollar, and the fact that neither fiat nor cryptocurrencies have been able to, so far, provide a tangible solution to this issue.
Popa explained that the Special Drawing Right (SDR) is at the moment the closest thing global economy has to a financial standard. SDR dates as far back as 1969 and is currently based on five of the most stable fiat currencies:
- U.S. Dollar
- Japanese Yen
- British Pound
- Chinese Renminbi
However, as SDR is exclusive to the IMF (International Monetary Fund) and its nation members – meaning it is not universal – it cannot be utilized as a currency by individuals or companies worldwide.
The Flaws of the US Dollar
Popa goes on to explain why the US Dollar, nor any other fiat currency for that matter, cannot be used as the Monetary Measurement Unit.
“Given no universal financial standard currently exists, the global economy has relied heavily on USD, deemed to be one of the most stable global currencies, to fill this role,: says Popa. “There are a number of issues with this approach. All fiat currencies depreciate in value over time due to inflation, so they cannot ever be truly stable. Like all national currencies, USD is vulnerable to the decisions made by the government that backs it. ”
To read more about the subject issue and explore the valuable insights coming from the Anchor CEO, Daniel Popa, visit: We Can’t Count on Fiat Forever.