ING economist: If the dollar does not go digital, it will fall out of favor

Source: CointelegraphChina

Editor's note: The original title was "ING Economist Says If Dollar Doesn't Go Digital, It May Fall Out of Favor"

When multiple countries and entities begin to weigh the effectiveness of central bank digital currencies, the dollar is actually still dominant-but how long will it last?

"The U.S. dollar is the dominant currency today," ING economist Carlo Cocuzzo said at a panel at London Blockchain Week. ,

"90% of foreign exchange transactions are in US dollars, so the United States may lose in this game."

A report released by The Bridge in September 2019 also showed similar important conclusions, in which the US dollar accounted for 60-70% of foreign exchange reserves.

Countries and businesses are interested in CBDC

Over the past year, entities and governments have expressed interest in digital currency issuance.

Facebook released a white paper on Libra stablecoin in June 2019, which will be supported by the value of multiple currencies and financial products. On the government side, China has repeatedly issued digital currency research on its research, the headline related to the central bank's digital currency (CBDC) issued by the state.

Cocuzzo foresees potential problem complexity

Libra has been a topic of concern for many regulators, especially since Facebook launched the plan. "From a US dollar perspective, this is a tricky issue," Cocuzzo said, referring to Libra-related remittances that Facebook mentioned.

Kocuso also questioned how citizens could use non-local currencies as payment. "China allows foreign customers to access digital renminbi," he said. He continued:

"What effect does this have on the dollar in the foreign exchange market? It will definitely have an impact, and I don't think the US central bank will wait and see."

Since the birth of Bitcoin more than 10 years ago, Bitcoin's assets and its underlying technology have shown the world a new way to balance speed and security. As countries and large companies explore this technology, regulatory agencies will need to adapt to the new systems that come with these changes.

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