"In the early days of the Donald Trump administration, many commentators speculated that this version 2.0 of Trump economics could threaten the global hegemony of the greenback a dominance that has declined over the decades and the huge advantages it gives the country in managing its public debt. However, amid the noise, antics, trade wars, and endless contradictions, Washington is quietly making moves to reinforce its dominance."
"This boom, which has already reached astronomical figures, represents a new form of indirect dollarization. Meanwhile, as the Financial Times reported earlier this month, senior government officials have explored the possibility of encouraging other countries to adopt the dollar, as Ecuador and El Salvador did 25 years ago, and have held meetings to that effect with various experts, including Steve Hanke, a veteran inflation and currency specialist at Johns Hopkins, known in some circles as the Money Doctor."
"Hanke confirmed the meeting to EL PAIS, which took place precisely amid turbulence in Argentina, while emphasizing as the government did when the information first emerged that no decisions have been made yet. While the Trump administration has a well-articulated policy on dollar-based stablecoins, it still needs to establish a more comprehensive strategy to promote the use of the dollar, he said."
Reports of the U.S. dollar's demise have been exaggerated. The Trump administration is taking steps to strengthen dollar dominance, including promoting dollar-pegged stablecoins and exploring diplomatic encouragement of dollar adoption abroad. The administration is aggressively developing the stablecoin market, a booming sector largely pegged to the U.S. dollar, creating a form of indirect dollarization. Senior officials have considered encouraging other countries to dollarize and have met with experts such as Steve Hanke; no decisions have been made. Officials acknowledge a well-articulated policy on dollar-based stablecoins but say a more comprehensive strategy is needed to promote broader dollar use. Stablecoins are virtual currencies pegged to assets and used for exchanging cryptocurrencies.
Read at english.elpais.com
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