The world of money is about to change, predicted Credit Suisse in its announcement concerning the New Monetary World Order. The Swiss bank believes that the current global tensions and COVID-19 pandemic have put too much of a strain on traditional finance. It now believes that Bitcoin — an asset it criticized in the past — will play a major role in establishing the money of the future.
Swiss global investment bank, Credit Suisse, recently released a new report that announces the arrival of a major change in the world of finance. The bank predicted a so-called New Monetary World Order, which is being fueled by the recent geopolitical tensions of the east, combined with the inflation dynamics of the west.
As a result of the world-changing events that have been taking place one after another over the past few years, the bank expects the soon rise of commodity-backed currencies to emerge. It believes that this will be the world in which Bitcoin thrives.
Bretton Woods III
The bank’s new prediction is based on the analysis called Bretton Woods III. The analysis was published by Zoltan Pozsar, a well-known investment strategist, who named it after the Bretton Woods agreement of 1944. The previous agreement pegged the value of USD to gold, while all other currencies were pegged to the value of the dollar. This was an agreement between 44 countries, established by their 144 delegates.
The agreement did not last for long; it collapsed in the ‘70s, leading to a new arrangement involving treasuries or “inside money.” Pozsar named this Bretton Woods II. Now, however, with global issues such as COVID-19 still damaging the economy and threatening to bring inflation to the dollar, as well as Russia being sanctioned by the western leaders due to its invasion of Ukraine, the world’s financial world is about to see another massive transformation.
Pozsar said that the reason for this is that Russia is the world’s largest commodity producer, and due to it being sanctioned by the West, the attention is shifting to non-Russian commodities. This is significantly boosting their value, while Russia’s own commodities are crashing.
The World of Money is About to Change
The Russian war against Ukraine is seen as the tipping point that will forever change money. Pozsar concludes that the biggest benefactors of the current events will be cryptocurrencies, and particularly Bitcoin. The coin has a limited total supply of 21 million coins, it can be transferred globally in a quick and simple way, and it cannot be controlled by any government, financial institution, or other centralized authority.
As such, Bitcoin’s future as digital gold is strengthened even more, and Pozsar believes that the world will turn to it as a safe-haven asset in times of crisis. Twitter’s former CEO, Jack Dorsey, has said that he expects Bitcoin to replace the dollar. Now, Credit Suisse, which criticized Bitcoin in the past, seems to believe that the coin will play a major role in how the money will work in the future.