Some financial analysts working at JP Morgan feel it will be a disadvantage for the US if cryptocurrencies become more popular and acceptable.
They believe that :“There is no country with more to lose from the disruptive potential of digital currency than the United States.” This statement was delivered on May 22 by Bloomber News.
Some of the major proponents of the move to discourage cryptocurrency, including Josh Younger and Michael Feroli also stated:
“This revolves primarily around U.S. dollar hegemony. Issuing the global reserve currency and the medium of exchange for international trade in commodities, goods, and services conveys immense advantages.”
Fragile Systems are at Stake
Although the analysts are not scared about the fall of the dollar, they are concerned that other systems linked to the currency may lose their ground. One of the examples they stressed on was SWIFT.
During the Iranian regime, SWIFT was the tool used to enforce punitive measures. With SWIFT, the US was able to place limitations on Iranian banks. This was a powerful move although not many on the international scene were happy with it because they claimed it wasn’t in agreement with European Union laws.
If countries are able to do without SWIFT, JPMorgan is afraid that the US will lose its powers to do certain things.
The bank wants the US to start considering digitalization.
The analysts put it this way:
“Offering a cross-border payments solution built on top of a digital dollar would, particularly if designed to be minimally disruptive to the structure of the domestic financial system, be a very modest investment to protect a key means to project power in the global economy.”
Before today, some other financial experts have raised similar concerns and one of such people is Judy Shelton who is believed to be capable of governing the US Federal Reserve Board.
Shelton wants the US to do something about digitalizing the dollar so that it can also be relevant worldwide.