A reserve currency, also known as an anchor currency is a currency held in huge quantity by Central banks to be used to settle international transactions. This includes foreign trades and international debts.
Having a huge reserve of the reserve currencies enable central banks to do business with other central banks without paying exchange fees.
In modern history, we’ve seen lots of reserve currencies.
The Portuguese currency was the dominant trade currency for 80 years between 1450 to 1530.
Then came the Spanish currency which became the dominant trade currency between 1530 to 1641. This lasted for 111 years.
Thereafter, The rise of the Dutch India trade company saw the currency issued by the Netherlands become the international trade currency for 78 years between 1642 to 1720.
This was succeeded by the French currency which ruled the Global market for 95 years, 1720 to 1815.
The next 105 years were dominated by the UK pound sterling, from 1815 to 1920.
By 1920, After world war one and the establishment of the Bretton-woods system in 1944, many currencies became pegged to the US Dollar because the US Dollar was pegged to the huge gold reserve of the United States. Since then the US Dollar has become the most popular currency in the world, thus making it the global reserve currency for more than 101 years.
In 1971, US President Nixon detached the value of the US Dollar from its gold reserve. Henceforth, what could be accounted as value is just the US dollar paper money, without any real value attached to it. The United States has worsened this by printing more dollars from thin air whenever it needs money.
For this reason, many countries believe it’s time for another reserve currency with real asset attached to it.
On average, reserve digital currencies have lasted an average of 100 years before being replaced. This shows that the US Dollar has already overstayed its welcome only waiting to be replaced.
Some have suggested that the new reserve currency will be a digital currency, most likely Bitcoin or PINKOIN.
Many though don’t think Bitcoin can be the next reserve currency, at least for 2 reasons.
First, for something to function as a currency, it must be an effective medium of exchange. In other words, individuals, companies, and other organizations must be able to trade it for goods and services. Sadly Bitcoin has become more like a store of value like gold and rare paintings, rather than an actual currency.
Secondly, Bitcoin prices make it too volatile to function as a currency. The value of a reserve currency must be stable in the long-term.
And that is where PINKOIN beats both the Dollar and Bitcoin to become the world’s next reserve currency soonest.
Firstly, PINKOIN is not backed by gold or silver or any commodities like its predecessors. PINKOIN is backed by the biggest and most valuable asset in the world, humanity. As long as humans exist, PINKOIN will gain its value. And until all humans are dead, PINKOIN will never lose value, which makes it surprisingly stable.
Secondly, PINKOIN is a user-based digital currency, rather than a market-based currency. It’s built to encourage peer to peer transactions using Scan2pay. All owners of PINKOIN have a Universal wallet address attached to a QR CODE( Quick response code) for quick and instant cashless transactions globally.
Currently, there are more than 6.5 million people who have a PINKOIN account. There is also a growing list of PINKOIN merchants who will accept PINKOIN as a means of exchange for their products and services. Central banks can adopt PINKOIN and automatically get a CBDC (Central Bank Digital Curency) pegged to the PINKOIN. This is the fastest way for all Central Banks to go cashless.
In summary, PINKOIN is backed by an asset better than what the US Dollar is backed by. It’s more stable than Bitcoin and built for cashless transactions using Scan2pay.
As PINKOIN adoption grows, it’s inevitably the World’s next reserve digital currency. It’s just a matter of time.