{"id":50828,"date":"2021-10-07T13:33:15","date_gmt":"2021-10-07T10:33:15","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=50828"},"modified":"2025-09-02T20:25:41","modified_gmt":"2025-09-02T17:25:41","slug":"the-fed-sees-cryptocurrencies-as-a-threat-to-global-dollar-dominance","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/the-fed-sees-cryptocurrencies-as-a-threat-to-global-dollar-dominance\/","title":{"rendered":"The Fed sees cryptocurrencies as a threat to global dollar dominance"},"content":{"rendered":"<p><span data-descr=\"Federal Reserve System\" class=\"old_tooltip\">the Fed<\/span> officials positioned digital currencies as one of the potential threats to the dollar&#8217;s global dominance in the world financial system.<\/p>\n<p>In the <a href=\"https:\/\/www.federalreserve.gov\/econres\/notes\/feds-notes\/the-international-role-of-the-u-s-dollar-20211006.htm\">the article<\/a> \u201cThe International Role of the U.S. dollar\u201d the heads of the Federal Reserve&#8217;s International Finance Department noted that over the past two decades dollar usage worldwide has remained stable. In their view, nothing threatens the dollar&#8217;s hegemony in the near term.<\/p>\n<p>In the longer term, experts named three potential rivals: the euro, the Chinese yuan, and digital currencies.<\/p>\n<p>Regarding the latter, Fed officials wrote:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe changing payment landscape could also pose a challenge to dollar dominance. For example, rapid growth of digital currencies, both private and official, could reduce dependence on the U.S. dollar.\u201d\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n<\/blockquote>\n<p>However, they considered it unlikely that technology alone could sufficiently offset the long-standing reasons for the dollar&#8217;s dominance.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cOverall, in the absence of any large-scale political or economic changes that would harm the dollar as a store of value or medium of exchange and simultaneously raise the attractiveness of alternatives, the U.S. currency is likely to remain dominant in the world in the foreseeable future,\u201d \u2014 the experts concluded.<\/p>\n<\/blockquote>\n<p>In 2020, the regulator <a href=\"https:\/\/u1f987.com\/en\/news\/fed-outlines-research-into-issuing-a-digital-dollar\">conducted<\/a> research into issuing a digital dollar. In April 2021, the head of the institution, Jerome Powell, <a href=\"https:\/\/u1f987.com\/en\/news\/fed-chair-signals-possibility-of-issuing-a-digital-dollar\">confirmed<\/a>.<\/p>\n<p>In his view, the issuance of the Fed&#8217;s digital currency <a href=\"https:\/\/u1f987.com\/en\/news\/fed-chair-the-emergence-of-a-digital-dollar-would-dent-bitcoins-popularity\">would undermine<\/a> Bitcoin&#8217;s popularity, which the regulator <a href=\"https:\/\/u1f987.com\/en\/news\/jerome-powell-the-fed-has-no-plan-to-ban-cryptocurrencies\">does not intend to ban<\/a>, as well as other crypto assets.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. Federal Reserve officials framed digital currencies as one of the potential threats to the dollar&#8217;s global dominance in the world financial system.<\/p>\n","protected":false},"author":1,"featured_media":50829,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1249,1138],"class_list":["post-50828","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-federal-reserve-system","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/50828","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=50828"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/50828\/revisions"}],"predecessor-version":[{"id":50830,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/50828\/revisions\/50830"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/50829"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=50828"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=50828"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=50828"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}