Cryptocurrencies have two opposing effects on regular fiat currencies. First, local fiat currencies like the Salvadoran colon face more competition because they

Cryptocurrencies have two opposing effects on regular fiat currencies. First, local fiat currencies like the Salvadoran colon face more competition because they were already struggling relative to currencies like the USD but now they also have competition from cryptocurrencies, especially in situations where their central bank is strongly manipulating the currency like in Venezuela. Second, global reserve currencies like USD, EUR, JPY will be strengthened in the sphere of "real" currencies because of the aforementioned weakening of alternative fiat moneys like the colon or Venezuelan peso. We might see the colon and peso fade away and leave the greenback dominant.