Prophecies that the U.S. dollar will lose its status as the world’s dominant currency have echoed for decades—and are increasing in volume. Cryptocurrency enthusiasts claim that Bitcoin or other blockchain-based monetary units will replace the dollar. Foreign policy hawks warn that China’s renminbi poses a lethal threat to the greenback. And sound money zealots predict that mounting U.S. debt and inflation will surely erode the dollar’s value to the point of irrelevancy.
But contra the doomsayers, Paul Blustein argues that the dollar’s standing atop the world’s currency pyramid is impregnable—barring a catastrophic misstep by the U.S. government. In his book King Dollar: The Past and Future of the World's Dominant Currency, he notes the dollar’s supremacy stems from several factors—mainly, the unrivaled depth, breadth, and liquidity of U.S. financial markets, as well as America’s legal and regulatory infrastructure.
