Bank of England Governor Says Digital Currency Could Snap US Dollar Dominance

[Music] hello folks you have reached the cryptocurrency portal here on Friday August 23rd just doing another update about the cryptocurrency space in general and we have some interesting information from the Bank of England’s governor and we just want to go through this this is on the daily Hottel website and this is one of our go-to places for articles about the cryptocurrency space so let’s go through this so mark carney is the governor of the Bank of England and he he recently made some comments and the Crypt the daily huddle put it in their analysis here so says Mark Carney governor of the Bank of England is pushing back against the US dollar in its role in the global economy speaking in Jackson Hole Wyoming on Friday at a gathering of central banks from around the world Carney details how the rise of technology is disrupting the current financial system and suggests that the days of the US dollar dominance may be numbered that’s just an amazing statement so let’s go through this quote technology has the potential to disrupt the network external externalities that prevent the incumbent global reserve currency from being displaced retail transactions are taking place increasingly online rather than on the street and through electronic payments over cash and the relatively high costs of domestic and cross-border electronic payments are encouraging innovation with entrance applying new technologies to offer lower-cost more convenient retail payment services not only do blockchain based systems allow money to flow like email across borders instantaneously and cheaply they’re also better suited for smartphones ecommerce in the Mobile a lifestyle of Millennials who are empowering the push for a cashless global economy with on-demand settlement in terms of speed and cost they outperform fiat currencies based on the traditional banking protocols that require multiple intermediaries Carney doesn’t mention any decentralized cryptocurrency tzer’s blockchain based payments systems such as Bitcoin aetherium Rev Linux P which have been greening gained traction and causing alarm among policy makers from India to the United States these alternatives are threatening the status quo because they’re able to function without governments and central banks he does however single out Facebook’s Libre as an application that is ignited a paradigm shift using technology to create a new digital currency backed by multiple countries to reduce if not eliminate the overarching impact of the US dollar around the world says Carney the most high-profile DS has been Libre a new payments infrastructure based on an international stable coin fully backed by reserve assets in a basket of currencies including the US dollar the euro and sterling it could be exchanged between users on messaging platforms and with participating retailers there are a host of fundamental issues that Libra must address ranging from privacy to AML CFT and operational resilience in addition depending on its design it could have substantial implications for both monetary and financial stability the Bank of England and other regulators have been clear that unlike in social media which standards and regulations are only now being developed after the technologies have been adopted by billions of users the terms of engagement for any news systemic private payment system must be enforced well in advance of any launch as a consequence it is an open question whether such a synthetic hegemonic currency shc would be best provided by the public sector perhaps through a network of central bank digital currencies even if the initial variants of the idea proved wanting the concept is intriguing it is worth considering how an SH C in the IMF s Institute for money and financial stability could support better global outcomes given the scale of the challenges of the current IMF s and the risks in transition to a more hegemonic reserve currency like the renminbi and s HC could dampen the domineering influence of the US dollar on global trade if the share of the trade invoice in s HC were rise shocks in the US would have less potin spillovers through exchange rates and the trade will become less synchronized across countries by the same token global trade would become more sensitive to changes in conditions in countries of the other currencies in the basket backing s HC so that’s the latest update you can see they have a link to check out his full speech we will actually link in the speech in the comment section below and probably in the description of this of this video so we really deeply appreciate you checking in with us here the cryptocurrency portal here on Friday August 23rd please subscribe to our Channel please like this video please comment on the video too so we have your feedback so thank you very much thank you again for reaching us and listening to the cryptocurrency portal [Music]

5 thoughts on “Bank of England Governor Says Digital Currency Could Snap US Dollar Dominance

  1. As referred to in the video, here is a link to the text of Mark Carney's speech:

  2. Check out our video reviewing Satoshi Nakamoto's orginal Bitcoin White Paper, which is the genesis of the crypto revolution:

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