CEO of Lazard Can Envision Crypto Replacing the US Dollar

Could cryptocurrencies one day replace the US Dollar? According to CEO of Lazard Ken Jacobs, the answer is yes.

In an interview with Bloomberg, Jacobs talked about the declining influence of the US Dollar as the world’s reserve currency. As the United States continues to isolate itself from the world, it becomes less and less attractive as a reserve currency.

Some people believe the Chinese Yuan or the Euro will replace the US Dollar as a reserve currency. Jacobs, however, claims cryptocurrency are more likely to become the reserve currency of the world.

“To the extent that we have unilateral foreign policy and unilateral trade policy, we’re sort of tempting the world to find an alternative,” Jacobs said in a Bloomberg Television interview aired Thursday. “Probably the greatest demonstration of soft power is the fact that the U.S. has the reserve currency of the world.”

Since World War II, the US Dollar has been the international currency of choice due to its stability and prevalence.

The US Dollar’s status as a reserve currency has been very beneficial for the US economy. As Bloomberg explains, it:

“keeps a lid on borrowing costs in America and helps fund the U.S. budget deficit as trading partners place their dollars in Treasuries.”

Yes, the CEO of one of the world’s largest asset management and advisory firms believes cryptocurrency is more likely to replace the US Dollar as the world’s reserve currency than the Yuan, the Euro, and other major currencies.

“The Main Currencies in Europe and China Are Unlikely Replacements”

When people start talking about the US Dollar losing its status as the preferred international reserve currency, it’s easy to look at alternatives like the Chinese Yuan or the Euro as the next contenders.

Jacobs, however, feels that’s not the case. He described other national currencies as unlikely replacements to the US Dollar. Instead, he pointed to cryptocurrencies as one potential replacement as an international reserve currency:

“…there’s enough technology out in the world today with cryptocurrency and changes going on that you can imagine, if you let your mind water a little bit, that something becomes an alternative in the future.”

In the Bloomberg interview, Jacobs was optimistic about the overall future of the global economy, although he was less optimistic about the future of the US economy. Jacobs cited major long-term risks to the United States like failure to agree on immigration reform needed to boost future economic growth.

Lazard is one of the world’s top 10 merger adviser firms. The company manages more than $250 billion of assets as of March 2018. Lazard was founded in New Orleans in 1848 and today is headquartered in New York City. You can view the entire Bloomberg interview with Lazard CEO Ken Jacobs at Bloomberg.com here.

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