Just a few years ago the fall of the US dollar was a fringe idea. Nowadays articles about the imminent collapse of the dollar are published nearly every week. With trillions being created in Washington, this seems to be certain. However, saying that the US dollar will collapse doesn't mean that it will, and if it does, the question is what can take its place.
To see whether the US dollar will collapse we need to examine what is the US dollar. By now everyone should know that the “US dollar” is really a “Federal Reserve Note” that is issued by the Fed, which is a private central bank. The vast majority also believes that it is fiat money without intrinsic value. This view is incorrect since the US dollar is backed by the US government obligations. What is also misunderstood is that the dollar is a security that states “this note is legal tender for all debts, public and private" and is enforced in the court of law. Meaning that courts of law are required to recognize the dollar as satisfactory payment for any monetary debt. So the dollar has value and it is supported by institutions including courts, banks, markets and the US government. At best the argument for the collapse of the dollar would be that some countries will no longer accept dollars. To see why this is a nonstarter we need to examine what are the reserve currencies.
There are three reserve currencies: US dollar, UK pound and euro. So what is a reserve currency, and what makes it different from all others. A reserve currency means that international debt can only be issued in these currencies. Note that the EU is not supposed to issue debt in the same way the US and UK can, so as far as the EU is concerned euro is not a reserve currency. Similarly Chinese yuan is a reserve currency in name only. Moreover, all countries besides the US and UK can issue their national currencies in an amount corresponding to the amount of reserve currencies they have. In other words, all such national currencies are rebranded reserve currencies. Because the world economy is based on dollars, pounds and euros, all contract disputes are settled in New York, London or Brussels.
Now assuming the US dollar will collapse, what can take its place? And the answer is a reserve currency can be replaced by another reserve currency. However, neither the pound, euro or yuan can step in to replace the dollar within the current monetary system. But what about an independent monetary system? A monetary system is the set of institutions by which money is maintained in an economy. At a minimum, such a system must provide means for maintaining accounts, performing transactions, resolving disputes, as well as making and servicing loans.
So if the US dollar were to falter, other monetary systems will compete to take its place. The Axio Monetary System will be one of them, and probably the only one able to provide currency with inherently stable intrinsic value, interest payments, privacy, transparency, secure ownership, free real-time transactions, international borderless transferability and convertibility, a variety of payment methods, free basic account services, and a legal framework. But most of all, the Axio was designed to serve the people. And even if the dollar does not falter, the Axio will still be able to compete against it.
For more information about the Axio Monetary System, please visit the Axios Foundation website.