Today, in an opinion piece in the
Financial Times, the IMF’s chief economist Gita Gopinath argued that digital currencies won’t displace the dollar as the currency that dominates global trade and finance. She referred to both private tokens as well as central bank digital currencies.
Ledger Insights previously explored how China’s central bank digital currency – the DC/EP – might help the
renminbi to challenge the dollar.
Gopinath asserts that the reasons for the dollar’s dominance are intangible factors such as a perception that the dollar is safe and stable. Additionally, this widely held opinion is reinforced through network effects. The more the dollar is used, the more it becomes useful to others.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
