May 25, 2020 JPMorgan report highlights the threat of CBDCs to the US Dollar’s preeminence.

A new report from JPMorgan Chase & Co.has stated that new central bank digital currency (CBDC) projects could undermine the preeminence of the US Dollar, specifically in regards to its use in global trade settlement and the SWIFT network. The report’s analysts argue that “There is no country with more to lose from the disruptive potential of digital currency than the United States”. Furthermore, the authors conclude that such a decline would have geopolitical consequences for the US and as such, it should consider implementing a digital currency payments system, framing it as “an exercise in geopolitical risk management”.

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