King dollar - can it be toppled

 

I was expecting a standard book on the history of the dollar’s rise, and the reasons it should be a dominant currency, as well as why it will fall. I have read many articles on this topic and thought I would get more of the same with King Dollar: The past and future of the world’s dominant currency. I was surprised by something different. While I don’t always like the breezy approach of new reporters to complex economic topics, I found this an interesting read. 

Blustein takes the reader on a different ride, focusing on the plumbing of banking through SWIFT messages and CHIPS. It provides a unique look at the history of clearing and the ascent of the dollar that many monetary theorists avoid. More importantly, the author focuses on how the anti-money laundering efforts of the US Treasury have an important impact on banking and the use of the dollar. There is a vast amount of behind-the-scenes efforts to control the flow of dollars for the benefit of the world economy, yet this interference has a dark side that leads some state actors to avoid surveillance. The attempt to restrict Russia from global banking and trade shows how regulation and oversight can affect the flow of money. The author also reviews the work to develop CBDCs, central bank digital currencies.

As alluded to in the final chapter, for the "king currency" having a throne comes with great responsibility.