BitMEX co-founder Arthur Hayes examines de-dollarization and its financial and political implications in an article titled ‘Exit Liquidity’.
Former CEO of BitMEX arthur hayes recently have your say On exit liquidity compared to the reserve currency position of the US dollar. In a Medium blog post, the American entrepreneur detailed whether the US dollar could be replaced as a global reserve currency. Additionally, Hayes debated whether China or any other powerful nation would be willing and able to replace the US as the global reserve currency issuer.
In his ‘Exit Liquidity’ writeup, Arthur Hayes explores the signs suggesting that some “corridors of trade are de-dollarizing” and what this portends for the US.
According to Hayes, reserve currency status confers some benefits, but also imposes the burden of cost effects on the host nation. The co-founder of BitMEX identified the main advantage as “printing currency at will to pay for real goods”. However, he added that such primary benefits do not see equal distribution among the citizens of the host country.
Arthur Hayes Draws Exit Liquidity Parallels Between American Haves and Have-Nots in the Face of Global De-Dollarization
Hayes stressed that the political and military superpower’s inequality problem is among the worst in the developed world, regardless of America’s level of wealth. Furthermore, he noted that this situation is worsening, although the majority of the US population, who have very few financial assets, feel the brunt of the reserve currency situation. According to Hayes, global de-dollarization threatens the status of the American elite, who have benefited massively from global reserve currency status. However, he also fears that most Americans could become ‘exit liquidity’ in regards to capital draining for their more privileged compatriots. In Hayes’ opinion, the American financial elite will do anything to remain influential amid the demonetization of the dollar. Therefore, such draconian measures to protect their wealth could have potentially transgressive global fiscal repercussions for less-than-reputable citizens.
Hayes’s writeup featured a series of detailed charts that supported his inequality argument. For example, a visual representation showed the US as No. 1 in the latest gross income inequality Gini coefficient among G7 countries. The US overtook the UK, Germany and Canada with a much higher figure of 0.434.
Hayes touches on Asia as potential global reserve currency successor to the US
Hayes suggested that many believe China could replace the US as the reserve currency issuer. However, the former BitMEX CEO stressed that cynics are still not convinced due to the yuan’s attractive nature. In a world where trades are increasingly priced in dollars, Hess’s opinion may leave critics wondering what the yuan can buy. According to him, another knock on Yuan is that China’s capital account remains closed.
In Hayes’ opinion, these constraints raise the question of whether China really wants to be the new global reserve currency issuer. Furthermore, he questioned the extent to which so-called de-dollarization might spur the desire for a new global reserve currency. Finally, former crypto business executive Hayes wrote that crypto could be important in shaping new international financial policies. The former BitMEX co-founder suggested that it is unknown how the global reserve currency saga will ultimately play out. However, he is fairly certain that in the coming years, the world will be trading in multiple currencies instead. Additionally, Hayes also predicted that the savings would be in digital assets such as gold and bitcoin (B T c,

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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