The global reserve currency: SDR and bitcoin

The global reserve currency: SDR and bitcoin


Earlier this month the G20 summit held in Hangzhou. Will the most interesting question is the renminbi to join the International Monetary Fund (IMF, InternationalMonetaryFund) of the SDR (SpecialDrawingRights). This issue is very important, but in the community did not have the same encryption currency value.

In order to help IMF to achieve security objectives the stability of international monetary and financial system, and the reserve currency. Each country to join the organization is assigned a quota, and the position of the hook in the international economy countries. The quota is SDR (SDRs, SpecialDrawingRights); its value is determined by a variety of currency weights, the dollar accounted for 41%, 31% euro, RMB 11%, 8% yen, 8% pounds.

The Executive Committee of the IMF audit every five years a SDR currency valuation, if required according to relevant requirements in advance mechanism. The aim is to ensure that the importance of this currency portfolio can reflect the mainstream currency in international trading and financial system, improve the attractiveness of SDR reserve assets.



IMF executive director ChristineLagarde said:

“To continue and deepen the work can bring more robust international monetary and financial system, and thus support the growth and stability of the world economy and Chinese”.

SDR will replace the dollar as the world reserve currency. Low volatility are the best unit of account; multi objective national currency value measurement and international law fit; many countries and even the national currency anchor SDR to increase transparency.

Although IMF and SDRs are not necessarily the best solution to create new international currency, because the United States has veto power, and has rejected some reform measures; but this is a step in the right direction. And this scheme is one of the most important defects, there is no government can not join. This will limit the currency in the international settlement of the utility, or in the enterprise or individual in the evaluation of effect.

If SDRs is open, the transaction will appear for currency, commodity price, pay against currency war and other interesting applications. If your salary is $3000 / month, regardless of dollar appreciation or depreciation, will receive the same amount of dollars. But if the salary is 3000SDR/ months, regardless of dollar appreciation or depreciation, every month you can receive the same value of the currency. This can protect everyone from the government intervention.

However, in the field to create a new crypto currency, the currency in a pile of other currencies on the basis of the idea also appeared. “MoneyasDebt” is the author of the book PaulGrignon said 2009 formed a digital currency (DigitalCoin). The part of a system called PerpetualCoin (permanent currency), can be issued in other currencies on the basis of. Unfortunately, the project has been stuck in the theoretical stage, the relevant website has been closed, it is not possible to see it into reality.


PaulGrignon said:

The purchase price of PerpetualCoin can be determined according to the foreign exchange market”.

But currently there is no anchoring SDR encryption currency, probably because we have alternative currency bitcoin is less than SDR. However, bitcoin price instability, it is not only inclusive, is not subject to government influence.

However, money is not difficult to create SDR. It can be said to be like Tether or more like BitUSD; because you can’t take out the money. The main problem is to ensure that the center of the currency currency value stability, especially the monetary currency weight or a combination of change. But once you create the currency used in the world will be very interesting.

Maybe we will see what is the real demands of enterprises and individuals of SDRs, rather than the government. Lucky this may accelerate the dollar or the petro Dollar Hegemony’s demise.

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