| On 1st October 2016, the Chinese Yuan became the world's 5th reserve currency. What does it take to become one and can Bitcoin get there? What are reserve currencies? The term reserve currencies today denotes currencies which form part of the International Monetary Fund's SDR (Special Drawing Rights) basket. SDR was created by the IMF in 1969 as a reserve asset, as there was a shortage of existing reserve assets (gold and the US Dollar) to support the expansion of world trade.
The currencies which form part of the SDR basket are the US Dollar, Euro, Japanese Yen, Pound Sterling and from 1-Oct, Chinese Yuan. The US Dollar will continue to constitute the major currency in the SDR basket, with a weight of 47%............................................Full Article: Source
|