Digital US Dollar will help maintain its dominance internationally: Federal

Washington: Jerome Powell, Chair of the US Federal Reserve, claimed ‘Use of cryptocurrency is rapidly increasing globally. The Federal Reserve is evaluating whether there can be an improvement in the transactions using digital currency. Federal Reserve has even published a white paper in this regard. According to that, the digital version of the USD will help maintain the domination of USD on the global level.’

Federal Reserve, the Central Bank of the United States, had recently organised the conference ‘International Roles of the US Dollar‘. Governor Powell justified the digital dollar while presenting his stand during the conference’s inauguration. The Federal Reserve has invited opinions from the population and various think tanks and experts. The stand presented by Powell in support of the digital dollar following becomes noteworthy.

The USD share in international transactions is observed to be reducing over the last few years. Along with leading countries like Russia, many countries are stressing over using local currency. At the same time, China is taking aggressive steps to increase the share of its currency Yuan. The countries facing US sanctions are exploring other options and China is using it to its advantage. Russia prefers transactions in Roubles and local currencies with its trading partners. Some countries of the world are also making major additions to their Gold stocks and loss of faith in the USD is said to be the main reason for this. Therefore, many big companies and countries have started officially recognising cryptocurrencies.

Nearly ten countries of the world have started using digital currency on a practical level. Whereas, central banks of more than 100 countries have started projects on different levels. All these developments go on to jolt the domination of the USD on the international level. Therefore, the United States has started preparations to launch the digital dollar to maintain its influence.