Article Image
IPFS News Link • Cyberspace and the New Economy

Digital Currencies Could Threaten US Geopolitical Power, Warns JPMorgan

• https://www.zerohedge.com by Marie Huillet

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.

SWIFT was notably a key lever in imposing sanctions on the Iranian regime, falling into line with the U.S. administration and suspending access for Iranian banks back in 2018. This caused tension with the European bloc, where finance ministers had attempted — and ultimately failed — to exempt the cross-border payments network from the restrictions. Some contend the SWIFT suspension violated European Union laws.


midfest.info