The collapse of the dollar will benefit Bitcoin, says former chairman of Morgan Stanley

Former President of Morgan Stanley Asia – Stephen Roach – predicted a 35 percent collapse for the US dollar in the next few years.

The former president predicts that the US dollar will collapse by at least 35%, which could be in favor of Bitcoin and other cryptocurrencies.

Stephen Roach discussed the global economic landscape in the context of COVID-19 during CNBC’sTrading Nation ‘ program . 

Roach warned investors of a potential collapse of the dollar, stressing that the failure of the world’s reserve currency would mark the end of an era.

“The US economy has been affected by significant long-standing macro imbalances, mainly low domestic savings and chronic current account deficits. But these problems only get worse as the fiscal deficit inflates in the coming years.

Roach published an article in Bloomberg on June 14. In it, he predicted a major collapse for the US dollar.

“My prediction that there will be a 35% drop in the value of the dollar is based on a comparison of the US dollar with the wide range of currencies of America’s trading partners.”

Roach also stressed that gold and Bitcoin should benefit from the weakness of the dollar, despite the relatively small size of the two markets, which could hardly absorb large adjustments in the forex markets, responsible for a daily turnover of $ 6.6 trillion.