Seeds of Wisdom RV and Economic Updates Monday Afternoon 5-19-25
Good Afternoon Dinar Recaps,
CIRCLE COURTING ACQUISITION BIDS FROM COINBASE AND RIPPLE, ASKS FOR AT LEAST $5 BILLION: FORTUNE
Circle Internet Financial, the issuer of the second-largest stablecoin, is reportedly courting acquisition bids at a valuation of at least $5 billion, according to a report by Fortune.
The alleged sales talks involve Coinbase, Circle’s longtime partner, and Ripple, a recent rival in the stablecoin space. These discussions are happening even as Circle pursues a public listing.
In April, Circle filed a prospectus for an initial public offering, although the valuation remains undisclosed. Shortly after, Ripple offered between $4 billion and $5 billion to acquire Circle. However, Circle rejected the offer, stating the bid was too low.
This isn’t Circle’s first attempt at going public. Back in 2022, during the crypto bear market, the company canceled its SPAC merger that would have valued it at a staggering $9 billion.
Circle joins several other crypto firms like Kraken and BitGo in signaling public listing intentions under the pro-crypto economic climate of President Donald Trump. However, some analysts question whether Trump’s economic agenda may eventually dampen IPO appetite.
Trump has also publicly pushed for stablecoin legislation to be passed by the end of the summer—a development that could directly affect Circle’s strategic decisions.
Circle and Coinbase have maintained a long-standing partnership, dating back to the formation of the CENTRE Consortium, which initially managed the USDC stablecoin. USDC remains the most used stablecoin on Coinbase, and Circle reportedly paid Coinbase around $900 million in distribution costs in 2024.
Coinbase, meanwhile, is expanding aggressively, pursuing deals with Deribit (a derivatives exchange) and IronFish (a privacy platform). It also just became the first pure-play crypto firm to join the S&P 500.
Ripple is also building its stablecoin presence. It recently launched RLUSD on Kraken, integrating it into the platform’s payment infrastructure.
@ Newshounds News™
Source: The Block
~~~~~~~~~
US DOLLAR DETHRONED: ONLY 60% GLOBAL RESERVES STILL BET ON ITS REIGN
The US dollar has been dethroned from its long-held position as the world’s undisputed reserve currency—a reality now backed by measurable data. Recent findings show that the dollar’s share of global reserves has declined to approximately 60%, down from 67% two decades ago. This gradual but persistent shift signals a transformational change in global finance, as central banks increasingly diversify their holdings away from the greenback. At present, the ongoing de-dollarization trend is considered one of the most consequential changes in the international monetary system in decades.
The Decline of Dollar Dominance in Numbers
The dollar’s share in global reserves has been steadily eroding over the past 20 years, reflecting a global strategy by central banks to reduce reliance on any single currency and to protect themselves from geopolitical risk.
Historical Context of the Dollar’s Weakening
Since the euro’s introduction in 1999, central banks have actively trimmed their dollar holdings. The British pound and Canadian dollar have gained modest ground, while global trade disputes and rising geopolitical tensions have accelerated a move away from U.S. currency dominance.
Economically stressed nations and those seeking greater monetary independence are contemplating a shift from using the U.S. dollar as the primary trade currency. As a result, “de-dollarization” has become a central topic in financial markets.
Paradox of Dollar Strength Amid Declining Reserve Status
Even as reserve status declines, the dollar has remained remarkably resilient. Its strength is driven by:
Higher U.S. interest rates
Strong capital inflows
Safe-haven appeal during global turmoil
As a result, the dollar has climbed to new highs in real terms, reflected in the Federal Reserve Trade Weighted Real Broad Dollar Index.
Market Reactions to Dollar Uncertainty
This year, the U.S. dollar weakened by 8% against a basket of major foreign currencies—fueling debate over its long-term reliability.
“It is hard to put the genie back in the bottle once such concerns are raised.”
— Vishwanath Tirupattur, Morgan Stanley strategist
With this uncertainty, investors are reallocating assets into gold, German bonds, and emerging markets, signaling a desire to diversify away from dollar-denominated investments.
Structural Challenges for Alternative Currencies
Despite this shift, replacing the dollar is no easy feat. Only a few alternatives come close to meeting the requirements of a reserve currency.
“There is really no alternative to the dollar. The Euro is very fragmented, China’s currency doesn’t float freely in markets, and the yen doesn’t have the scale to compete.”
— Brent Coggins, CIO, Triad Wealth Partners
A true reserve currency must be:
Freely convertible
Backed by deep and liquid bond markets
Readily accessible in times of crisis
The U.S. Treasury market continues to provide these essentials, despite the dollar’s recent challenges.
Future Outlook for the Global Reserve System
While a complete abandonment of the dollar seems unlikely in the near term, the trend is clear: the world is moving toward a multipolar currency system.
“We ultimately think this shift is tactical rather than a fundamental reassessment of U.S. assets.”
— Nick Bennenbroek, International Economist, Wells Fargo
Yet, what truly worries White House economists is not short-term volatility—but the potential for a long-term structural reallocation of global savings away from U.S. assets. Such a move would undermine America’s ability to borrow cheaply, long considered an “exorbitant privilege.”
The global financial order is evolving. While no immediate successor to the dollar exists, the momentum of de-dollarization is unmistakable and growing.
@ Newshounds News™
Source: Watcher Guru
~~~~~~~~~
Seeds of Wisdom Team RV Currency Facts Youtube and Rumble
Newshound's News Telegram Room Link
Follow the Roadmap
Follow the Timeline
Seeds of Wisdom Team™ Website
Thank you Dinar Recaps