The US Fed considers cryptocurrencies to be one of the possible threats to the dollar’s dominance

In the future, US currency hegemony may also be threatened by the euro and the yuan

07.10.2021 - 13:30

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What's new? US Federal Reserve System (FRS) analysts published the article “The International Role of the U.S Dollar”. Experts stated that virtual assets are one of the possible threats to the dominance of the American currency in the global financial system.

Article on the Fed’s official website

What can damage the dollar? In the article, the heads of the Fed's International Finance Department stressed that the use of the US currency in the world has remained stable over the past 20 years. So far, its hegemony is safe, but in the long run, it is threatened not only by digital currencies, but also by the euro and the Chinese yuan.

“In sum, absent any large-scale political or economic changes <...> the dollar will likely remain the world's dominant international currency for the foreseeable future.” - experts concluded.

What statements were made earlier? In 2020, the Fed stated that the system is conducting research to start a digital dollar issue. In the spring of 2021, regulator’s chair Jerome Powell confirmed this information.

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