The issuance of digital currencies by the central bank could affect the dominance of the US dollar, according to the JPMorgan report – Cryptocurrency

A report by the U.S. bank JPMorgan points to a harmful assessment of the hegemony of the dollar, as the digital currencies of the central banks serve to circumvent the control of the United States over the global payment system

As explained in a report by JP Morgan, outlined by Bloomberg More recently, control of the US dollar in the global financial system could be compromised due to the potential issue of Central Bank Digital Currencies (CBDC).

In his analysis Josh Younger and Michael Feroli, point out key aspects in which this can happen and, on the one hand, mention some of the points Fragile in the dollar system as a global trade settlement service FASTYou can lose your domain to the global payment system by alternatively introducing digital currencies.

this in turn Ability to bypass SWIFT and dollar controlscan limit American ability Impose sanctions and control funding on governments, businesses, or individuals, an aspect that reduces the geopolitical strategy of United States. In this regard, analysts assure:

There is no country that has more to lose from the disruptive potential of the digital currency than the United States (…). For high-income countries, and especially the United States, the digital currency is an exercise in geopolitical risk management

Then he emphasizes BloombergThe report ensures that even the European Union (EU)I could choose reduce American solvencynoting that the suspension of FAST Iranian banks in 2018 could violate the laws of the EU. At the moment there doesn’t seem to be any short-term intention on the part of European Union for forward with a digital euroalthough recently the The French central bank has started Experiments on its technological infrastructure.

In addition, analysts claim that “In general, there is a reasonable reason for central banks to adopt digital currencies.”, but still, “Some are unlikely to have the transformative impact that some expect.”.

in the United StatesAs in other countries in the world, the discussion of a The national digital currency has gained space and debateamong other things, in order not to lose sight of the progress China and its digital yuan, an initiative they point to “imminent” from the Asian giant, something that keeps the countries of the world awake so as not to stay behind while some like it South Koreato follow closely in addition to China, too You see a CBDC as a viable alternative to respond to the global crisis generated by the pandemic of Covid-19.

Finally analysts out JP Morgan ensure:

Offering a cross-border payment solution based on a digital dollar would be a very modest investment to protect a key means of projecting power into the world economy, especially if it is to minimally affect the structure of the national financial system.

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