Fed report: digital currency can decrease dependence on the US dollar

The hottest report from the US Federal Reserve (Fed) sees the digital currency as a possible competitor for dominance of the US dollar.

In the report “The Role of the US Dollar in the World”, researchers from the Fed’s global finance division stated that in the close to potential there will be no force that can influence the unity of the US dollar. dollar on the worldwide economic system.

However, in the extended run, there will be 3 main problems: the European Union, the rise of China and the reputation of digital currencies.

In terms of digital currency, Fed researchers say:

“The shift in the payments industry could also pose a challenge for the US dollar. For example, digital currencies, both private and other governments, can reduce dependence on the dollar ”.

In current many years, the US Federal Reserve has come beneath a good deal of stress from each the legal and the US public concerning its strategy to construct a nationwide digital currency (CBDC), specially in the context of several other nations. personal model of CBDC.

Meanwhile, the Fed is obviously hesitant about issuing a digital US dollar. Fed President Jerome Powell frequently avoids queries about CBDCs, saying they nevertheless need to have congressional approval.

Recently, the Fed chief confirmed that the US does not intend to immediately ban cryptocurrencies to pave the way for CBDCs like China did.

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