Lord Mervyn King, the former Governor of the Bank of England, indirectly asserted that global use of the U.S. dollar will likely decline because some countries want to avoid using the dollar. He expressed his views as part of a hearing earlier this week on central bank digital currencies (CBDC) by the U.K.’s House of Lords Economic Affairs Committee, where he is a member.
The discussion started around how the U.S. has used the monetary system to enforce sanctions, resulting in fragmentation. The question is whether a CBDC will accelerate this.
There was a separate debate about the motivations for a CBDC. Lord King addressed the need for more retail payments competition towards Visa’s Europe CEO Charlotte Hogg.
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