Global digital currency will replace dollar as reserve currency

"No country has more to lose from the destructive potential of digital currency than the United StatesStates. "

This conclusion was made by analysts of the largest bank in the United States JPMorgan Chase, as reported by Bloomberg News.

Josh Younger, Head of JPMorgan's US interest rate derivatives strategy, and US Chief Economist Michael Feroli believe:

"The issuance of a global reserve currency and medium of exchange for international trade in raw materials, goods and services carriesI have huge advantages in myself."

Despite the fact that analysts do not expect that inin the near future, the dollar will lose the status of a global reserve currency, they pointed to weak links in the dominance of the currency, including in trade settlements and the SWIFT interbank messaging system.

It is noteworthy that SWIFT was a key lever inthe imposition of sanctions against the regime in Iran, which caused tension in the European bloc. The fact is that the finance ministers tried, but could not free the network of cross-border payments from restrictions. Restrictions in SWIFT violated the laws of the European Union.

JPMorgan notes that if countries couldto circumvent SWIFT, the United States would reduce its own degree of influence to achieve its geopolitical strategic goals and reduce its dependence on global dollar dominance.

For this reason, JPMorgan emphasized that "digital currency is an exercise in managing geopolitical risks."

It is interesting that similar views are held byJudy Shelton, one of President Donald Trump's nominees for the US Federal Reserve Board of Governors. Shelton advocates the potential of a future digital dollar, which she believes will “preserve the primacy of the dollar around the world,” so the United States “should think about it.”

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