Banking giant JPMorgan Chase & Co sees threat for US geopolitical power and leadership in central bank digital currencies (CBDC), Bloomberg Crypto reports.
According to Josh Younger, Head of US interest-rate derivatives strategy and Michael Feroli, chief US economist, the United States is the only country that risks losing "from the disruptive potential of digital currency" more than any other country in the world.
"This revolves primarily around US dollar hegemony. Issuing the global reserve currency and the medium of exchange for international trade in commodities, goods, and services conveys immense advantages," the economists wrote in the bank's report.
The report highlights that in case other countries were able to abandon the SWIFT system and the dollar’s domination, it would be much more difficult for the US to achieve its goals in sanctions and terrorist-financing enforcement.
Earlier, Head of the Bank for International Settlements (BIS) Innovation Hub Benoît Cœuré at the Reinventing Bretton Woods Committee said that the current discussion on central bank digital currency (CBDC) came into sharper focus.
The Covid-19 pandemic highlighted the value of having access to diverse means of payments, and the need for any means of payments to be resilient against a broad range of threats, Cœuré said.
Meanwhile, the Bank of France (La Banque de France), which is the central bank of France, announced the successful testing of the digital euro working on the blockchain network.
Hence, France became the first country where a digital analogue of paper currency has been successfully tested.