The dollar could lose its status as a leading currency if it does not go digital, says ING economist
The US Dollar Could Fall Out of Favor If It Doesn’t Go Digital, ING
According to ING economist Carlo Cocuzzo, stablecoins may weaken positions US dollars and take away the status of the world currency from him, if he himself does not become digital.
Speaking at London Blockchain Week, an expert from a Dutch financial conglomerate confirmed that today the dollar dominates the foreign exchange market and accounts for 90% of Forex turnover. However, after Facebook announced the development own cryptocurrency, pegged to fiat, many central banks have begun to actively explore digital currencies. Wherein some countries, for example, China, have been working in this direction for several years, and have entered the testing stage.
Carlo Cocuzzo believes that this could negatively affect the popularity of the physical dollar. In his opinion, the option is not excluded when citizens of countries will start using foreign currencies for internal settlements.
As an example, he cited the digital yuan, to the electronic system of which China can open access to foreigners. In this case, the leading position of the dollar will be greatly shaken..
However, the economist added that, probably, central bank The United States will not just wait and watch from the sidelines. However, the Fed does not yet see the point in the development of the digital dollar, despite the fact that some members of Congress indicate the need for this step.
text: Ivan Malicheno, photo: 1zoom