Global Economy Mirrors Climate Change Amid Dollar Debate

Climate change, which threatens the entire world, does not simply refer to the Earth warming. It signifies the increasing frequency of extreme weather events such as heatwaves and cold spells, concentrated heavy rains, and the growing instability and volatility of climate systems.

The global economy today resembles climate change. This is because abnormal signals are being detected everywhere due to the U.S.-China trade conflict, tariff wars, and the rapid increase in national debts. Amid growing uncertainty, forecasts regarding the status of the so-called “King Dollar” are also diverging.

Kenneth Rogoff, a Harvard University professor, stated in a recent WEEKLY BIZ interview, “The dollar’s dominance is slowly but surely waning.” His argument is that as U.S. debt surges to uncontrollable levels, trust in the dollar is shaking. Conversely, Paolo Ardoino, Tether CEO, argues, “The dollar’s position will instead become more solidified.” He claims that as dollar-pegged stablecoins rapidly gain mainstream adoption, the international status of the dollar linked to stablecoins could strengthen.

It is still too early to determine whether global economic crises and technological advancements will sustain or undermine the dollar. However, one thing is clear: winds of change are blowing. Just as efforts to reduce carbon emissions are being made in preparation for climate change, in this era of major economic transformation, there is an urgent need to prepare to confront massive changes.