Connect with us

Published

on

Bretton Woods institutions must reorient, US Treasury secretary says

United States Treasury Secretary Scott Bessent recently called for “Bretton Woods institutions,” such as the International Monetary Fund (IMF), to reorient themselves, a signal that the global monetary order could be shifting.

Speaking at the Institute of International Finance (IIF) on April 23, Bessent called on the IMF and the World Bank to correct trade imbalances and protect the value of fiat currencies against exchange rate risk.

“The Bretton Woods institutions must step back from their sprawling and unfocused agendas,” Bessent said. He added:

“The IMF’s mission is to promote international monetary cooperation, facilitate the balanced growth of international trade, encourage economic growth, and discourage harmful policies like competitive exchange rate depreciation.”

Bessent’s call for the IMF to correct trade imbalances between countries, specifically the US and China, coincides with a decline in the US dollar to three-year lows, $36 trillion in US government debt, and stiff economic competition from China.

Dollar, Economy, United States, Bitcoin Adoption
The Dollar Currency Index (DXY), a measure of the US dollar’s strength relative to other major fiat currencies, plunges to three-year lows. Source: TradingView

Investor and hedge fund manager Ray Dalio argues that the world is experiencing a global macroeconomic shift that will upend the post-WWII financial order and eventually replace the US dollar as the global reserve currency, potentially with a digital form of money.

Related: Trump tariffs reignite idea that Bitcoin could outlast US dollar

The Bretton Woods Agreement

The Bretton Woods Agreement was signed in 1944 and pegged the currencies of 44 countries to the value of the US dollar, which, at that point, was pegged to the value of gold at $35 per ounce.

Eliminating complex foreign exchange risks between freely floating currencies to make global trade more efficient was the primary goal of the agreement.

Dollar, Economy, United States, Bitcoin Adoption
US President Richard Nixon delivers the infamous “Nixon shock” speech in August 1971, suspending the dollar’s convertibility to gold. Source: Richard Nixon Presidential Library

In August 1971, US President Richard Nixon announced the end of the dollar’s convertibility to gold — formally ending the Bretton Woods agreement in a move that was supposed to be temporary.

“Your dollar will be worth just as much tomorrow as it does today,” Nixon incorrectly told Americans during his now-infamous address.

The IMF and the World Bank, which were spawned from the Bretton Woods agreement, continue operating in an attempt to curb the effects of free-floating fiat currencies on the foreign exchange market.

Bessent eyes stablecoins to protect the US dollar, BTC advocates have another idea

Speaking at the White House Digital Asset Summit on March 7, Bessent said stablecoins could drive international demand for US dollars and US government debt instruments.

Bessent added that the Trump administration will use stablecoins to protect the US dollar and its status as the global reserve currency.

Bitcoin maximalist Max Keiser argued against this plan, predicting that gold-backed stablecoins would outcompete dollar-pegged tokens due to the desire for low-volatility, inflation-resistant money.

Dollar, Economy, United States, Bitcoin Adoption
The US dollar’s purchasing power has declined by over 90% since the year 1900. Source: Visual Capitalist

In March this year, BlackRock CEO Larry Fink wrote that the $36 trillion US national debt could drive investors to Bitcoin (BTC) as market participants start to see BTC as a better store of value than the US dollar.

Bitwise executive Jeff Park voiced a similar prediction in February, focused on the effects of US President Donald Trump’s trade tariffs.

The analyst wrote that the tumult from the ongoing trade war would cause worldwide inflation, which would cause individuals to seek alternative stores of value like Bitcoin, driving its price much higher in the long term.

Magazine: Bitcoin payments are being undermined by centralized stablecoins

Continue Reading

Politics

FBOT registry won’t bring offshore crypto exchanges to the US — Attorney

Published

on

By

<div>FBOT registry won't bring offshore crypto exchanges to the US — Attorney</div>

<div>FBOT registry won't bring offshore crypto exchanges to the US — Attorney</div>

The Foreign Board of Trade (FBOT) framework is designed for the legacy financial system and is a poor fit for cryptocurrency exchanges.

Continue Reading

Politics

‘Scam of all scams’: Crypto dev claims Trump-linked WLFI ‘stole’ his money

Published

on

By

‘Scam of all scams’: Crypto dev claims Trump-linked WLFI ‘stole’ his money

‘Scam of all scams’: Crypto dev claims Trump-linked WLFI ‘stole’ his money

A crypto developer says Trump-linked crypto project WLFI froze his tokens and refused to unlock them, calling it “the new age mafia.”

Continue Reading

Politics

Farage confirms he wants to deport women asylum seekers back to Taliban in Afghanistan

Published

on

By

Farage confirms he wants to deport women asylum seekers back to Taliban in Afghanistan

Nigel Farage has confirmed he wants to deport women asylum seekers back to the Taliban in Afghanistan if he becomes prime minister.

The Reform UK leader’s position on the topic has not been clear, with him previously saying he would send women back to the fundamentalist regime that took over after western militaries withdrew, before now saying he would.

Mr Farage was speaking to Sky News’ political editor Beth Rigby at the Reform UK party conference in Birmingham.

Politics live: Govt responds to Farage wanting early election

When asked if he would “detain” women and children and “send them back”, the Clacton MP said “yes”.

Challenged on when he said in August that he was not “discussing” women and children, Mr Farage claimed this was a reference to his desire to seeing men detained on arrival in the UK.

At the time he said he was “very, very clear” on the “deportation of illegal immigrants”, adding: “We are not even discussing women and children at this stage – there are so many illegal males in Britain, and the news reports that said that after my conference yesterday were wrong”

More on Migrant Crossings

Speaking today, Mr Farage claimed that the UK has a “duty of care” if a four-year-old arrives in a dinghy, for example – but not so for women and men.

“For clarity, those that cross the English Channel will be detained and deported, men and women,” Mr Farage went on.

“Children, we’ll have to think about.”

The Reform leader also rowed back on his pledge to stop all boats within two weeks if he is elected prime minister.

Speaking to the conference yesterday, Mr Farage said: “You cannot come here illegally and stay – we will stop the boats within two weeks of winning government.”

Please use Chrome browser for a more accessible video player

Watch Farage face questions on his tax affairs

But speaking to Beth Rigby today, he changed tack – saying “the passing of legislation” would be required.

He said the boats would then be stopped within two weeks, or sooner.

In the interview with Rigby, Mr Farage tried to claim he did not say he would end the boats within two weeks of “winning government”.

But the video of his speech, as well as the transcript released by Reform UK, clearly show him saying: “We will stop the boats within two weeks of winning government.”

When asked why he wouldn’t be able to stop the boats within two weeks of winning government, Mr Farage said it was impossible and “no one” can prevent them crossing the Channel.

The Reform UK leader said the law he wants to introduce will be called the Illegal Migration Act once it is passed by parliament.

He confirmed his agenda includes leaving the European Convention on Human Rights, shutting down asylum hotels and housing people at RAF bases instead, as well as deporting Channel migrants.

Mr Farage also claimed that deportation flights would also begin within two weeks of the law changing, and this combination of factors would stop people from wanting to travel from France.

This strategy all depends on Reform UK winning the next general election – which Labour does not have to call until 2029.

However, Mr Farage says he believes the government will collapse in 2027 due to economic pressure and other factors.

Reform are currently well clear of Labour and the Conservatives in the polling, and are targeting next year’s Welsh, Scottish and English local election to try and win more power in councils and national assemblies.

Continue Reading

Trending