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The original was posted on /r/monero by /u/bitlamas on 2024-02-14 03:48:29.

I believe that for cryptocurrencies like monero to potentially replace the dollar as a reserve currency, they'll need to offer similar functionalities. The dollar reigns supreme as the world's reserve currency but it has many flaws. The thing is... we don't really have anything else that can effectively step into its shoes, do we?

The Eurodollar system is the backbone of our current global financial setup. It's this global web of banks and financial institutions that deal with U.S. dollar-denominated deposits and loans outside of the United States. Its origins go back to Cold War-era deposits in European banks, hence the name. This system is absolutely crucial in today's financial landscape, playing a key role in smoothing out international trade and finance.

Believe it or not most countries pretty much hopped on this system voluntarily during globalization, although geopolitical dynamics did incentive the move. The dollar became the go-to currency for facilitating international trade. Eg. a business in Italy sourcing materials from Turkey and selling goods to Norway can seamlessly use the dollar throughout every step of its operation. The dollar's liquidity, flexibility in interest rates, and vast network of banks and financial institutions make it a powerhouse currency. And thanks to the Eurodollar system, businesses and financial institutions can wield the dollar's power outside of Uncle Sam's jurisdiction, which is pretty neat.

So if we're about to get rid of the US dollar, we need to find something that does everything that the USD does as well, and maybe even better.

How could monero potentially replace this system? I'd like to know how you see monero providing the same features that the Eurodollar system does today, making it a global currency deserving of reserve currency status.