July 21, 2024

The dollar may lose the status of the leading currency if it does not become digital, says the economist ING

The dollar may lose the status of the leading currency if it does not become digital, says the economist ING

According to ING economist Carlo Kokutstso, stablecoins can weaken the US dollar and rob him of the status of the world currency if he does not become digital.

Expert speaking at London Blockchain WeekThe 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 of its own fiat-pegged cryptocurrency, many central banks began to actively explore digital currencies. However, some countries, for example China, have alreadyThey have been working in this direction for several years, and have entered the testing phase.

Carlo Cocuzzo believes that this could have a negative impactaffect the popularity of the physical dollar. In his opinion, the possibility cannot be ruled out that citizens of countries will begin to use foreign currencies for internal payments.

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 most likelyThe US central bank will not just wait and watch from the sidelines. However, the Fed does not yet see the point in developing a digital dollar, despite the fact that some members of Congress indicate the need for this step.

</p>