The article discusses the historical context of global currencies, focusing on the Spanish dollar and its evolution into the modern US dollar. The Spanish dollar, used from the 16th to the 19th centuries, became a trusted medium of exchange due to the reliability of its issuer, the Spanish government. After Latin American countries gained independence, political instability diminished trust in their currencies, leading to a decline in their use. The British pound sterling later became the next global currency, valued not just for its gold backing but also for the trust in British financial institutions. Today, the US dollar, while still the main global currency, faces skepticism due to erratic policies, prompting some to consider alternatives like the Chinese renminbi or cryptocurrencies such as Bitcoin. Ultimately, trust remains a critical factor in determining the dominant global currency.

Source 🔗