in

Digital Assets Could Pose a Threat to US Dollar Dominance in the Future: United States Federal Reserve

Digital Assets Could Pose a Threat to US Dollar Dominance in the Future: United States Federal Reserve


Digital assets could pose a threat to the supremacy of the US dollar, according to a new report posted on the Federal Reserve’s website.

Researchers at the Fed say that a “shifting payments landscape” and the “rapid growth” of both private sector and government-sanctioned digital currencies could reduce reliance on the dollar.

 

“Changing consumer and investor preferences, combined with the possibility of new products, could shift the balance of perceived costs and benefits enough at the margin to overcome some of the inertia that helps to maintain the dollar’s leading role.”

Despite these concerns, the Fed doubts that digital assets could ever completely topple the world’s leading fiat currency.

“It is unlikely that technology alone could alter the landscape enough to completely offset the long-standing reasons the dollar has been dominant.

In sum, absent any large-scale political or economic changes which damage the value of the US dollar as a store of value or medium of exchange and simultaneously bolster the attractiveness of dollar alternatives, the dollar will likely remain the world’s dominant international currency for the foreseeable future.”

Fed Chairman Jerome Powell said last month that he has no plans to outlaw cryptocurrencies.

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix
 

Check Latest News Headlines

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/breakermaximus





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

What do you think?

You Don’t Need To Prove With Bitcoin, Because Time Will Do Its Work. It is up to you to take (or not) this once-in-a-lifetime opportunity.

Bitcoin Short-Term Supply

Bitcoin Short-Term Supply Reaches All-Time Low