Bitcoin challenging the US dollar’s worldwide supremacy seems more likely after it emerged that even the country’s biggest bank thinks the status quo cannot last.
Central Banks Amassing Gold ‘Makes Sense’
In a report issued July 10, Craig Cohen, a strategist for JPMorgan Chase, said changing habits among non-US central banks are creating a real sense of unease about the dollar’s long-term status.
Classically the world’s reserve currency, the greenback is seeing increasing competition from foreign powers and fallbacks such as gold.
“Central banks across the globe are also adding to gold reserves at their strongest pace on record. 2018 saw the strongest demand for gold from central banks since 1971 and a rolling four-quarter sum of gold purchases is the strongest on record,” Cohen wrote.
To us, this makes sense: gold is a stable source of value with thousands of years of trust among humans supporting it.
While JPMorgan predictably did not mention cryptocurrency, the comments underscore the increasing schism between the financial world and US politicians, including President Donald Trump, who remain convinced they can preserve the dollar’s stature.
As Bitcoinist reported, Trump himself reiterated that desire in recent comments on Bitcoin and cryptocurrency, in which he said he “was not a fan” of them.
“We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!” he wrote at the time.
Are Central Banks Buying Bitcoin?
JPMorgan meanwhile also noted the dollar’s declining overall share of central bank reserves,