Why Bitcoin is a perceived threat to the US dollar

The US dollar has been the world’s official reserve currency for several decades, yet many in the political sphere believe the rise of Bitcoin could end its global supremacy.

During a recent Congress hearing regarding Facebook’s digital currency project Libra, US Congressman Brad Sherman warned Bitcoin and other cryptocurrencies have the potential to threaten the US dollar’s dominance over the global financial system.

“Cryptocurrency either doesn’t work, in which case investors lose a lot of money, or it does achieve its objectives perhaps and displaces the US dollar or interferes with the US dollar being virtually the sole reserve currency in the world,” he said.

Sherman claimed the US dollar’s dominance over other currencies brings multiple benefits for Americans, such as profits generated by the Federal Reserve for the US Treasury and the ability to influence other countries’ policies and actions through the use of economic sanctions.

“We stand to lose all that…