Could the dollar lose its status as the dominant reserve currency? Analysts at Natixis explain why there is no substitute for the dollar that is safe, large and designed to store a large quantity of savings.

Public cryptocurrencies are not reserve currencies

“In the event of a conflict, any OECD country, not just the United States, may freeze the foreign exchange reserves of a country that enters into conflict with the West.” 

“Few countries want to have their foreign exchange reserves in China’s renminbi, given the political situation in that country.” 

“Alternative assets (gold, cryptocurrencies) are too small to be substitutes for the dollar.” 

“As for public cryptocurrencies (CBDCs), they may facilitate trade, but they are not different reserve currencies from public currencies (we fail to see why the existence of a crypto-renminbi would increase the reserve currency role of the renminbi).”