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IPFS News Link • Currencies

Digital Currencies Could Threaten US Geopolitical Power, Warns JPMorgan

• https://cointelegraph.com, Marie Huillet

"There is no country with more to lose from the disruptive potential of digital currency than the United States."

So goes the stark warning from analysts at the U.S.' largest bank, JPMorgan Chase, in a new report covered by Bloomberg News on May 22.

The report's authors — among them, JPMorgan's head of of U.S. interest-rate derivatives strategy Josh Younger and chief U.S. economist Michael Feroli — wrote:

"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."

The more fragile links in the global dollar system

While the analysts do not anticipate the dollar losing its status as global reserve currency anytime soon, they pointed to some of the weaker links in the currency's dominance — including in trade settlement and the SWIFT messaging system.


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