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George Ma
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Crypto
May 23 11:23

JPMorgan: central banks' digital currencies threaten US dollar status as a reserve currency

 the reserve status of the US dollar, which is the most important aspect of the geopolitical power of Washington, is under threat.
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U.S. should pay special attention to the growing popularity of the idea of global central banks to launch their own digital currencies, write experts of JPMorgan Chase.

Bank's own digital currency is a sensible idea, but it is unlikely to transform the global financial system, as many hope, the bank's experts warn. They doubt that the dollar will lose its reserve status in the foreseeable future, but the appearance of digital competitors, which can be used in international trade and SWIFT system, will weaken its position.
EU may also want to weaken the role of the US dollar, JPMorgan analysts write. In particular, they recall that the decision taken in 2018 to block the access of some Iranian banks to the SWIFT system may have violated EU laws.
If other countries had the tools to cope without SWIFT and USD it would be much harder for Washington to impose sanctions.
In February, the head of the Federal Reserve Jerome Powell said that the regulator is working hard to study various aspects related to the digital currency, but does not take any obligations.