Morgan Stanley said that CBDCs could be driving a move away from US dollar. Check out the latest reports about this below.
CBDCs and US dollar
According to a recent research note by Andrew Peel, executive director and head of digital asset markets at Morgan Stanley, central bank digital currencies (CBDCs) have the potential to shift away from the current dominance of the US dollar.
Peel suggests that CBDCs can create a new standard for cross-border payments, which would reduce reliance on traditional payment structures and the US dollar.
Says Peel,
“As CBDCs become more widely adopted and technologically advanced, they hold the potential to establish a unified standard for cross-border payments, which could diminish the reliance on traditional intermediaries like SWIFT and the use of dominant currencies such as the dollar.
Furthermore, CBDCs can enable significant innovation in financial services, such as the use of smart contracts for automating payments, making the concept of programmable money a practical reality.”
According to the analyst, stablecoins that are pegged to the US dollar are going to have a significant impact on the global financial sector.
They have the potential to revolutionize the way funds are transferred across borders. The analyst also believes that stablecoins could be the “killer app” for cryptocurrencies.
“Rather than challenge the dollar’s dominance, their continued evolution and growing acceptance by mainstream financial entities underscore their potential to significantly alter the landscape of global finance and in fact reinforce the dollar as the dominant global currency…
As the world adjusts to these technological advancements, understanding the interplay and nuances between traditional fiat currencies, Bitcoin, e-money, and stablecoins becomes crucial. This dynamic is set to significantly influence the future of international trade and finance, potentially reshaping the global economic and financial landscape.”
Stay tuned for more details about the incoming CBDCs.
