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It depends on the new medium which is going replace USD.
It will also affect world's economic and financial stability.
If this were to happen, a lot of things would have to change. I think it would mean the end of fiat currency, if something were to replace the USD it would need to be more secure than the USD, something like gold. Or maybe it would mean that our market system collapsed and so it would be a barter system, so food and other commodities would be the basis for exchange.
Curious to know what will happen if it really happens. A little uproar will happen for a while in beginning, later new thing comes to make everything goes normally. Thank you.
war and fighting for all country under terroist :/
It will be just like a blood group change in a human body--for the time being and in the near future.
The answer differs between an economy and another.
For poor countries nothing will change while for rich countries their economies maybe affected.
But in reality the USD will not be replaced in the coming future for millions and millions of reasons.
It will detrimental in emerging economies and developing countries however it will boast up stronger economies like EU
If we look at the matter in many countries especially countries of the third world, you will find that USD is dominant on the transactions and the exchange rate, it seems that there is a national currency but in fact there is currency controls in the rise and fall of the exchange rate and all economic transactions
For the extreme developed countries, replacing USD as a trading currency would be beneficial to some point. But it is really a threat to the developing countries and under developed countries. This would restrict their growth to develop.
Thus it would be a bad idea to replace USD as a trading currency all over the world.
The US would have a rude awakening! They finally would have to stick to a budget, no more printing money out of the “yin yang” as the current administration does and inflation would bring the US to the ground!
It would be an awakening for the US!
Many do not know that the USD has not been backed by Gold since1/31/1934 and by Silver1960!
“This collateral is chiefly held in the form of U.S. Treasury, federal agency, and government-sponsored enterprise securities.” The strong Euro did not help the US economy to lower the trade deficit or to get larger sales.
I do not think it will break down the world economy … business will go as usual, since there are countries already trading directly with each other and it is working!
I only foresee a problem for the US, since it needs its trade value to be the leading currency in this world!
