Former Federal Reserve official 怼 Bank of England Governor: The idea of ​​cryptocurrency replacing the US dollar is unreasonable

According to Coindesk's September 27 report, a former Federal Reserve official responded to the statement that the Bank of England governor had previously suggested that cryptocurrencies might be more beneficial in the international market than the US dollar.

(Source: pixabay )

The Bank of England Governor said in August that a Libra-like "new hegemonic currency (SHC)", best provided by the public sector, would help end the dollar's dominance as a global reserve currency. He also said that the new hegemonic currency is also a better choice than another French currency, which may eventually replace the US dollar.

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Subsequently, Carney, who will resign as the governor of the Bank of England in January 2020, said:

In the long run, we need to change the existing rules of the game. When the change comes, we should not use one currency hegemony in exchange for another currency hegemony. We should consider every opportunity, including the opportunities that new technologies bring, to create a more balanced and effective system.

Libra is led by Facebook and is supported by a consortium of 28 major companies including Uber, PayPal and Visa. It aims to launch a stable currency that represents a basket of legal and government bonds.

In response to Carney, Simon Potter, who previously served as executive vice president and head of the marketing department at the Federal Reserve's New York branch, said: "I have no reason to support Carney's point of view. He did not consider the important role of the dollar at the international level."

Yesterday, at an event in New York, Potter said:

I believe that in the case of a large and highly liquid capital market in the United States, it is unreasonable to use a more complex currency. If there is no currency that can price goods and have a strong market, then the global economy will become very difficult.

Although central banks are unlikely to cooperate in the same digital currency, Potter said that private companies may do so, which should be “worried” by central banks.

He believes that although national monetary sovereignty "is designed to protect people and contribute to economic development, companies are only interested in selling products."

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