Aliza Esley S.

Cañon FM2A
Can anything challenge the almighty dollar's dominance?
Reaction paper

The video provided was entitled "Can anything challenge the almighty dollar's
dominance?"in which solely tackles and argues whether any other currency can
challenge the US dollar's position as the dominant global currency. The video discusses
the reasons why the US dollar has held its position for so long and examines the
potential challengers, including China's yuan, the euro, and cryptocurrencies like
Bitcoin. It was also tackled in the video the role of previously studied international
institutions like the International Monetary Fund and the World Bank in the global
financial system and how it is related and might influence the future of these currencies.

It was not new for me to know the existence and the underlying power that the dollar
currency holds. I was able to understand further the dominance of the US dollar in the
global financial system, with the currency being used for a wide range of transactions,
including trades, investments, and debts. It was clearly mentioned in the video and
therefore I have learned that the dollar's position has been reinforced by factors, namely
such as the strength of the US economy, the size of its financial markets, and the
stability of its political system. I was also able to know potential challengers to the US
dollar's dominance. These potential currency challengers are Yuan, Euro, and Bitcoins.
Starting with China's yuan. I was able to know that China has been working to
internationalize its currency and promote its use in global transactions. However, the
yuan currently accounts for only a small fraction of global payments and faces
challenges such as limited convertibility and concerns about China's economic and
political system. Moreover to its potential challengers, is the euro, which is the second-
most widely used currency in the world. I believe that the euro has the advantage of
being used by a large and economically powerful group of countries, but it also faces
challenges such as the debt crisis in some eurozone countries and the lack of a unified
fiscal policy. And ofcourse it was not also new to me the significant rise and power of
cryptocurrencies like bitcoin, in which I agree that the rise of cryptocurrencies like
Bitcoin is seen as a potential challenger to traditional currencies.

Overall, the video provides an overview of the factors that determine a currency's
dominance and raises important questions about the future of the global financial
system. In my opinion, the US dollar's dominance is unlikely to be challenged in the
near future, there are more potential challengers that could emerge in the future
however significant international institutions are promoting the use of these currencies
which evidently play a significant role in determining the future of the global financial
system.