Will the general adoption of central bank digital currencies end the U.S. dollar’s role as the world’s reserve currency? Will it end the last vestiges of freedom in the U.S.? From Tyler Durden at zerohedge.com:
As central banks including the Fed, the ECB and (of course) the PBOC (along with some 85 others) scramble to roll out their own digital currencies, some naive crypto bros might assume that the financial establishment and the government have completely embraced cryptocurrencies. But as we have pointed out before, this isn’t exactly true. The reality is that while they have spoken of ‘the financial revolution,’ they have only embraced some aspects of cryptocurrency.
For example, they have embraced the fact that all transactions on a digital blockchain can be carefully tracked and monitored, assuming they are the ones in control of said blockchain. This deep level of vision and insight would allow centralized financial authorities (like the Fed) to exert unprecedented levels of control over Americans’ spending habits.
But what impact will the advent of digital currencies have on the dollar’s hegemonic status in the global monetary order? Fed expert Jim Bianco offered some very interesting thoughts on this topic during his latest interview with MacroVoices’ Erik Townsend, where he offered an interesting prediction.