The Geopolitics of Currencies and the Future of the International System

What are the geopolitical implications of the new geography of money? At present, one currency stands head and shoulders above the rest –the US dollar, familiarly known as the greenback. The dollar is the only truly global currency, used for all the familiar purposes of money –medium of exchange, unit of account, store of value– in virtually every corner of the world. From its dominant market share, the United States gains significant economic and political advantages. The question is: can the dominance of the dollar be challenged? The answer comes in two parts: first, if we look at the logic of market competition; and, secondly, if we factor in government preferences as well.