According to Sputnik, Mark Carney (governor of UK bank) declared that a #digital_currency which a group of countries support it, is needed to compete with #dollar because dollar played a dominant role in the world over past century and becomes a barrier for global improvement. It is used as the primary settlement currency for international trades. However he added that “developments in the U.S. economy, by affecting the dollar exchange rate, can have large spillover effects to the rest of the world.” He continued “While the world economy is being reordered, the U.S. dollar remains as important as when Bretton Woods collapsed”.

A digital currency might not yet be ready to replace the dollar as a global currency but this concept is intriguing. “It is worth considering how an SHC in the IMFS could support better global outcomes, given the scale of the challenges of the current IMFS and the risks in transition to a new hegemonic reserve currency like the Renminbi,” he said.

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