Future Markets: Dedollarisation, SVB, Payment Methods & Changing Regulations

New Fronts in the Global War Against the U.S. Dollar: De-Dollarization

Thus, a percentage of crypto purists want to disintermediate the global banking system and replace the U.S. dollar as the “hegemonic” global fiat currency. Strategic dollar shorting is their long play.

Some claimed that “Venture Catastrophists” caused the SVB bank run out of greed: Any complex event has multiple causes. Too many bank customers tried to withdraw too much money at once. Many factors contributed:

SVB made the same mistakes that bring down most financial firms: mismatched durations and poor risk management. It invested long in mortgage loans and Treasury bonds and borrowed short from startups that needed cash to operate.

For tighter regulation, SVB successfully lobbied the Trump administration to raise the asset limit.

Interest rates rose at a historic rate, lowering its long-term investments.

SVB's communications and strategy of selling equity to plug its balance sheet hole caused the run it was trying to prevent.

SVB's startup customers are unusually nervous: They're interconnected by a few VC firms and have cash balances well above the FDIC insurance limit of $250,000, increasing the risk of a bank stampede.

The feds turned on the lights and closed the bar by Friday morning. The Venture Catastrophist was born on Twitter while they worked over the weekend to ring-fence the contagion and compensate SVB's depositors. The fear mongering was intended to garner support for a federal bailout of SVB depositors, many of whom were Catastrophists. (1)

SVB bank failure included investments in cryptocurrency startups, and the federal bailout (induced by the Catastrophists contagion activity) saved many VC portfolio positions in bitcoin and crypto entities.

Once again: a market position that bet against the long-term stability of a particular bank and the U.S. banking system in general, while using the bailout to save long-term investments that are hedges against the dollar as the global fiat currency. A dizzying, nasty saga and a dog chasing its tail.

Brazil's Lula and France's Macron recently stated their countries' intent to forge partnerships to move away from the dollar's continued centralization in the global financial system. The Saudis and Chinese have already joined in. De-Dollarization leaders from various global industries have spoken out. Consider these perspectives on this issue:

The US Dollar: Weaponized？

Brazil's Lula Demands End to Dollar Trade Dominance

Geopolitical Concerns as the Yuan Replaces the Dollar as Russia's Most Traded Currency

“Why De-dollarization is Inevitable” an Op-Ed columnist from China Daily

During China Visit, Macron Endorses Reduced Dependence on U.S. Dollar Nine Expert Voices on the Rise of De-dollarization

The forthcoming livestream necessitates providing unambiguous responses to several crucial inquiries.

1. What is the vision of some crypto purists with regards to the global banking system and the U.S. dollar？

2. What were some of the proximate causes of the run on SVB bank according to some observers？

3. How did the federal bailout of SVB bank potentially benefit some investors in cryptocurrency startups？

4. Who are some of the global leaders and industry figures that have spoken out in favor of de-dollarization？

5. Name some of the experts and business figures who have commented on the rise of the de-dollarization trend.