May 28, 2023

IMF: cryptocurrency will not supplant the dollar in the near future

IMF: cryptocurrency will not supplant the dollar in the near future

Gita Gopinat, chief economist at the International Monetary Fund (IMF), believes it is unlikely that digital a currency can replace the dollar as the dominant monetary unit in the world.

In an interview with the Financial TimesGopinat acknowledged the “intriguing opportunities and prospects” of the cryptocurrency, but at the same time pointed out the lack of a global financial infrastructure and widespread recognition. According to her, these factors are necessary in order to displace the dollar as a global reserve currency.

According to an economist, advanced paymenttechnology is not enough to gain the status of a global reserve currency. The reason for the dominance of the dollar lies in its relative security and stability, proven over decades. It is worth noting that at the moment, the US dollar is more than 60 percent of the world currency reserve.

And although last year many Central BanksEurope and Asia began to publicly consider the possibility of issuing their own digital currencies, Gita Gopinat believes that this process will take a very long time.

IMF opposes quick and rashtransition to national digital currencies, fearing the loss of important correspondent banking relations and premature destruction of the infrastructure of the global financial system.