USD Global Currency Status And Crypto Market Role Analysis

The definition and history of USD

USD is the abbreviation for United States Dollar, which is the official currency of the United States. It officially became the national currency after the Coinage Act was passed in 1792 and quickly developed into a major global trading and reserve currency.

The core position in the global financial system

The US dollar is the preferred currency for international trade settlements, with commodities such as oil and gold priced in USD. Over 80% of foreign exchange transactions are conducted in USD, giving it an irreplaceable financial influence.

Exchange rate fluctuations and economic impact

When the US dollar strengthens, it increases the external debt burden of emerging markets, affects global import and export trade, and indirectly suppresses the prices of precious metals and encryption currencies, becoming an important indicator of price fluctuations in various assets.

The role of USD in the crypto market

Through stablecoins like USDT and USDC, the value of the US dollar is mapped to the blockchain, becoming an important foundation for digital asset trading and lending, promoting the stability and growth of the DeFi ecosystem.

Mainstream representatives of stablecoins

USDT, as the most liquid USD stablecoin in the market, along with the more transparent USDC and DAI supported by decentralized protocols, together maintain the value of on-chain dollar assets.

Summary

USD not only supports the traditional economic system but has also successfully extended into the blockchain world through stablecoins, continuing to be a key player in the global financial and crypto market.