Alexsava/Getty Images
- Insider asked ChatGPT of OpenAI to weigh in on whether the US dollar or China’s yuan will be the dominant world currency in the future.
- The chatbot stressed that there was potential for a “multipolar” system, rather than a system dominated by one or two currencies.
- ChatGPT also noted the rise of both the euro and the yuan in international trade.
The US dollar has been the dominant currency for international trade and global foreign exchange reserves, but a wider group of currencies may play a leading role in the future.
This is according to ChatGPT, the popular artificial intelligence chatbot created by OpenAI. In response to a question whether the US dollar or the Chinese yuan would be dominant in the future, ChatGPT declined to choose between the two.
Pointing to a more diverse set of currencies, both currencies have their pros and cons, and it is possible that none will come out on top in the future.
“The US dollar has been the dominant international currency over the past century, and is widely used and accepted as a store of value, medium of exchange and unit of account,” ChatGPT said. Its widespread use, especially in international trade, gives the US dollar significant influence globally. However, in recent years, efforts have been made to reduce the dominance of the dollar and increase the use of the euro and other euro-like currencies. Yuan, in international transactions.”
As for the yuan, China has been gradually increasing its role in the global economy in recent years, becoming more widely used in international trade and investment.
Beijing has also sought to internationalize the yuan, also known as the renminbi, and make it a more attractive alternative to the US dollar.
“In conclusion, it is uncertain to predict which currency will become dominant in the future, but it is likely that the world will see a shift towards a more multipolar currency system, in which multiple currencies play a significant role rather than a single dominant one,” ChatGPT predicted.
The reaction is notable in that ChatGPT’s knowledge base only extends to the end of 2021, meaning that last year’s move away from the US dollar did not factor into its prediction.
In 2022, the US and its Western allies freeze Russia’s foreign exchange reserves and lock it out of the SWIFT financial system in response to Moscow’s war on Ukraine.
Since then, efforts to undermine the dollar’s dominance have emerged, including Russia and China developing a new reserve currency along with other BRICS countries last year, as well as efforts by Russia and Iran to create a cryptocurrency backed by gold. is included.
China is also pressing countries in the Middle East to make oil deals in yuan instead of dollars, and analysts say that will spur the rise of the so-called petroyuan. And Bloomberg reported last week that big Indian refiners are moving away from the US dollar to buy Russian crude.
Meanwhile, ChatGPT’s currency prediction contrasts with that of “Dr. Doom” economist Nouriel Roubini, who recently wrote in the Financial Times that a bipolar currency system would emerge dominated by the dollar and the yuan.
Watch now: Popular videos from Insider Inc.
It’s loading…
Source: markets.businessinsider.com
