The Federal Reserve (Fed) does not believe that a massive influx of central bank digital currencies (CBDCs) around the world would impose any threat to the US dollar's international status, as the scope of cross-border CBDCs still remains "quite limited."
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At the conference on the international role of the dollar, the policymakers came to a consensus that there's no sign — at least in the foreseeable future — that CBDCs could lead to drastic changes in the global currency ecosystem. The Fed notes that a complex of other factors such as the rule of law, stability, network effects, and the depth of markets remains to be "crucial for the advantages held by dominant currencies." The Fed said:
"Panelists did not express material threats to the international roles of the dollar arising from digital assets in the short run, and suggested that digital assets could actually reinforce these roles over the medium run if new sets of services structured around these assets are linked to the dollar."
As the Fed pointed out that there's no threat to the dollar, the regulator doesn't seem to be working on any plan B (like digital dollar) should the events go in unexpected direction.
In June, Fed Chair, Jerome Powell, said that the regulator's representatives are closely monitoring cryptocurrencies amid increased volatility in the market. Powell particularly noted that there was no any significant impact on the macroeconomy of the situation in the bitcoin (EXANTE: Bitcoin) market.
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