In a new Morgan Stanley report, analysts indicate that BTC could put the U.S. dollar ahead as a global currency, which accounts for about 60% of international foreign exchange reserves.
Morgan Stanley’s head of digital assets, Andrew Peel, notes that this shift is significantly accelerated by the SEC approving a list of spot Bitcoin ETFs in the United States, with weekly inflows into new products exceeding $1.18 billion. Apart from this, BTC has seen constant growth over the past 15 years, and 106 million people worldwide currently own the cryptocurrency, adding that there are now Bitcoin ATMs in over 80 countries.
That being said, CBDCs from other countries could also impact the dominance of the US dollar, allowing for fast cross-border payments without the need for a common currency such as the US dollar.
“[CBDCs] hold the potential to establish a unified standard for cross-border payments, which could diminish the reliance on traditional intermediaries like SWIFT and the use of dominant currencies such as the dollar.”
Morgan Stanley’s report
Currently, Bitcoin’s denomination stands at nearly 49%, according to Block Research. In November 2023, Bitcoin’s share of the cryptocurrency market was more than 51.4%, one of the highest figures in recent years. Bitcoin’s expanding dominance highlights its role in the cryptocurrency market and its impact on altcoins and overall sentiment.