Is the dollar the world's currency?

The dollar is not just the currency used in the U.S., it is very much the world's currency. It's been that way for 80 years – but that could change. You might just think of the dollar as the money in your wallet, the cash you use to buy your morning coffee. But the dollar is much, much bigger than that.

Is the dollar a real currency?

Strictly speaking, the government-issued currency in use today, the U.S. dollar, is not money per se. It is a transmogrification of market money foisted on the people by force through the legal-tender laws. It is a derivative of the commodity—gold—that emerged over centuries as the market’s medium of exchange.

Why is the dollar a popular currency?

The Dollar’s popularity as a medium of exchange has solidified its position as the dominant currency in international banking. More than that, the U.S. has maintained massive trade deficits, which has led to an abundance of U.S. treasury securities and banknotes held by the rest of the world.